PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in thisstyletype.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or thisstyletype reconciles conflicts
between statutes enacted by the 2012 Regular Session of the General Assembly.

HOUSE ENROLLED ACT No. 1001

AN ACT to amend the Indiana Code concerning state offices and administration and to
make an appropriation.

Be it enacted by the General Assembly of the State of Indiana:

SECTION 1. [EFFECTIVE JULY 1, 2013]
(a) The following definitions apply throughout this act:
(1) "Augmentation allowed" means the governor and the budget agency are
authorized to add to an appropriation in this act from revenues accruing to the
fund from which the appropriation was made.
(2) "Biennium" means the period beginning July 1, 2013, and ending June 30, 2015.
Appropriations appearing in the biennial column for construction or other permanent
improvements do not revert under IC 4-13-2-19 and may be allotted.
(3) "Deficiency appropriation" or "special claim" means an appropriation available
during the 2012-2013 fiscal year.
(4) "Equipment" includes machinery, implements, tools, furniture,
furnishings, vehicles, and other articles that have a calculable period of service
that exceeds twelve (12) calendar months.
(5) "Fee replacement" includes payments to universities to be used to pay indebtedness
resulting from financing the cost of planning, purchasing, rehabilitation, construction,
repair, leasing, lease-purchasing, or otherwise acquiring land, buildings, facilities,
and equipment to be used for academic and instructional purposes.
(6) "Federally qualified health center" means a community health center that is
designated by the Health Resources Services Administration, Bureau of Primary Health
Care, as a Federally Qualified Health Center Look Alike under the FED 330 Consolidated
Health Center Program authorization, including Community Health Center (330e), Migrant
Health Center (330g), Health Care for the Homeless (330h), Public Housing Primary
Care (330i), and School Based Health Centers (330).
(7) "Other operating expense" includes payments for "services other than personal",
"services by contract", "supplies, materials, and parts", "grants, subsidies, refunds,
and awards", "in-state travel", "out-of-state travel", and "equipment".
(8) "Pension fund contributions" means the state of Indiana's contributions to a
specific retirement fund.
(9) "Personal services" includes payments for salaries and wages to officers and
employees of the state (either regular or temporary), payments for compensation
awards, and the employer's share of Social Security, health insurance, life insurance,
dental insurance, vision insurance, deferred compensation - state match, leave
conversion, disability, and retirement fund contributions.
(10) "SSBG" means the Social Services Block Grant. This was formerly referred to
as "Title XX".
(11) "State agency" means:
(A) each office, officer, board, commission, department, division, bureau, committee,
fund, agency, authority, council, or other instrumentality of the state;
(B) each hospital, penal institution, and other institutional enterprise of the
state;
(C) the judicial department of the state; and
(D) the legislative department of the state.
However, this term does not include cities, towns, townships, school cities, school
townships, school districts, other municipal corporations or political subdivisions
of the state, or universities and colleges supported in whole or in part by state
funds.
(12) "State funded community health center" means a public or private not for profit
(501(c)(3)) organization that provides comprehensive primary health care services to
all age groups.
(13) "Total operating expense" includes payments for both "personal services" and
"other operating expense".
(b) The state board of finance may authorize advances to boards or persons having
control of the funds of any institution or department of the state of a sum of
money out of any appropriation available at such time for the purpose of establishing
working capital to provide for payment of expenses in the case of emergency when
immediate payment is necessary or expedient. Advance payments shall be made by
warrant by the auditor of state, and properly itemized and receipted bills or invoices
shall be filed by the board or persons receiving the advance payments.
(c) All money appropriated by this act shall be considered either a direct appropriation
or an appropriation from a rotary or revolving fund.
(1) Direct appropriations are subject to withdrawal from the state treasury and for
expenditure for such purposes, at such time, and in such manner as may be prescribed
by law. Direct appropriations are not subject to return and rewithdrawal from the
state treasury, except for the correction of an error which may have occurred in
any transaction or for reimbursement of expenditures which have occurred in the
same fiscal year.
(2) A rotary or revolving fund is any designated part of a fund that is set apart as
working capital in a manner prescribed by law and devoted to a specific purpose
or purposes. The fund consists of earnings and income only from certain sources
or combination of sources. The money in the fund shall be used for the purpose
designated by law as working capital. The fund at any time consists of the
original appropriation to the fund, if any, all receipts accrued to the fund, and all
money withdrawn from the fund and invested or to be invested. The fund shall be
kept intact by separate entries in the auditor of state's office, and no part of the fund
shall be used for any purpose other than the lawful purpose of the fund or revert
to any other fund at any time. However, any unencumbered excess above any prescribed
amount shall be transferred to the state general fund at the close of each fiscal year
unless otherwise specified in the Indiana Code.

SECTION 2. [EFFECTIVE JULY 1, 2013]

For the conduct of state government, its offices, funds, boards, commissions, departments,
societies, associations, services, agencies, and undertakings, and for other appropriations
not otherwise provided by statute, the following sums in SECTIONS 3 through 10 are
appropriated for the periods of time designated from the general fund of the state of
Indiana or other specifically designated funds.

In this act, whenever there is no specific fund or account designated, the appropriation
is from the general fund.

Included in the above appropriations for house and senate expenses are funds for
a legislative business per diem allowance, meals, and other usual and customary
expenses associated with legislative affairs. Except as provided below, this allowance
is to be paid to each member of the general assembly for every day, including Sundays,
during which the general assembly is convened in regular or special session, commencing
with the day the session is officially convened and concluding with the day the session
is adjourned sine die. However, after five (5) consecutive days of recess, the legislative
business per diem allowance is to be made on an individual voucher basis until the
recess concludes.

Each member of the general assembly is entitled, when authorized by the speaker of the
house or the president pro tempore of the senate, to the legislative business per diem
allowance for every day the member is engaged in official business.

The legislative business per diem allowance that each member of the general assembly
is entitled to receive equals the maximum daily amount allowable to employees of the
executive branch of the federal government for subsistence expenses while away from
home in travel status in the Indianapolis area. The legislative business per diem changes
each time there is a change in that maximum daily amount.

In addition to the legislative business per diem allowance, each member of the general
assembly shall receive the mileage allowance in an amount equal to the standard mileage
rates for personally owned transportation equipment established by the federal Internal
Revenue Service for each mile necessarily traveled from the member's usual place
of residence to the state capitol. However, if the member traveled by a means other
than by motor vehicle, and the member's usual place of residence is more than one
hundred (100) miles from the state capitol, the member is entitled to reimbursement
in an amount equal to the lowest air travel cost incurred in traveling from the usual
place of residence to the state capitol. During the period the general assembly is
convened in regular or special session, the mileage allowance shall be limited to
one (1) round trip each week per member.

Any member of the general assembly who is appointed by the governor, speaker of
the house, president or president pro tempore of the senate, house or senate minority
floor leader, or Indiana legislative council to serve on any research, study, or survey
committee or commission, or who attends any meetings authorized or convened under
the auspices of the Indiana legislative council, including pre-session conferences and
federal-state relations conferences, is entitled, when authorized by the legislative
council, to receive the legislative business per diem allowance for each day the
member is in actual attendance and is also entitled to a mileage allowance, at the
rate specified above, for each mile necessarily traveled from the member's usual
place of residence to the state capitol, or other in-state site of the committee,
commission, or conference. The per diem allowance and the mileage allowance
permitted under this paragraph shall be paid from the legislative council appropriation
for legislator and lay member travel unless the member is attending an out-of-state
meeting, as authorized by the speaker of the house of representatives or the president
pro tempore of the senate, in which case the member is entitled to receive:
(1) the legislative business per diem allowance for each day the member is engaged
in approved out-of-state travel; and
(2) reimbursement for traveling expenses actually incurred in connection with the
member's duties, as provided in the state travel policies and procedures established
by the legislative council.

Notwithstanding the provisions of this or any other statute, the legislative council
may adopt, by resolution, travel policies and procedures that apply only to members
of the general assembly or to the staffs of the house of representatives, senate, and
legislative services agency, or both members and staffs. The legislative council may
apply these travel policies and procedures to lay members serving on research, study,
or survey committees or commissions that are under the jurisdiction of the legislative
council. Notwithstanding any other law, rule, or policy, the state travel policies and
procedures established by the Indiana department of administration and approved
by the budget agency do not apply to members of the general assembly, to the staffs
of the house of representatives, senate, or legislative services agency, or to lay members
serving on research, study, or survey committees or commissions under the jurisdiction
of the legislative council (if the legislative council applies its travel policies and
procedures to lay members under the authority of this SECTION), except that, until
the legislative council adopts travel policies and procedures, the state travel policies
and procedures established by the Indiana department of administration and approved
by the budget agency apply to members of the general assembly, to the staffs of the house
of representatives, senate, and legislative services agency, and to lay members serving
on research, study, or survey committees or commissions under the jurisdiction of the
legislative council. The executive director of the legislative services agency is responsible
for the administration of travel policies and procedures adopted by the legislative
council. The auditor of state shall approve and process claims for reimbursement of travel
related expenses under this paragraph based upon the written affirmation of the speaker
of the house of representatives, the president pro tempore of the senate, or the executive
director of the legislative services agency that those claims comply with the travel
policies and procedures adopted by the legislative council. If the funds appropriated
for the house and senate expenses and legislative salaries are insufficient to pay all
the necessary expenses incurred, including the cost of printing the journals of the
house and senate, there is appropriated such further sums as may be necessary to pay
such expenses.

Each member of the general assembly is entitled to a subsistence allowance of forty
percent (40%) of the maximum daily amount allowable to employees of the executive
branch of the federal government for subsistence expenses while away from home in
travel status in the Indianapolis area for:
(1) each day that the general assembly is not convened in regular or special session;
and
(2) each day after the first session day held in November and before the first session
day held in January.

However, the subsistence allowance under subdivision (2) may not be paid with respect
to any day after the first session day held in November and before the first session
day held in January with respect to which all members of the general assembly are
entitled to a legislative business per diem.

The subsistence allowance is payable from the appropriations for legislators' subsistence.

If the senate or house of representatives eliminates a committee or officer referenced
in this SECTION and replaces the committee or officer with a new committee or position,
the foregoing appropriations for subsistence shall be used to pay for the new committee
or officer. However, this does not permit any additional amounts to be paid under this
SECTION for a replacement committee or officer than would have been spent for the
eliminated committee or officer. If the senate or house of representatives creates a
new, additional committee or officer, or assigns additional duties to an existing officer,
the foregoing appropriations for subsistence shall be used to pay for the new committee
or officer, or to adjust the annual payments made to the existing officer, in amounts
determined by the legislative council.

If the funds appropriated for legislators' subsistence are insufficient to pay all the
subsistence incurred, there are hereby appropriated such further sums as may be
necessary to pay such subsistence.

FOR THE LEGISLATIVE COUNCIL AND THE LEGISLATIVE SERVICES AGENCY
Total Operating Expense
15,855,439
15,124,164
LEGISLATOR AND LAY MEMBER TRAVEL
Total Operating Expense
775,000
775,000

Included in the above appropriations for the legislative council and legislative services
agency expenses are funds for usual and customary expenses associated with legislative
services.
If the funds above appropriated for the legislative council and the legislative services
agency and for legislator and lay member travel are insufficient to pay all the necessary
expenses incurred, there are hereby appropriated such further sums as may be necessary
to pay those expenses.

Any person other than a member of the general assembly who is appointed by the governor,
speaker of the house, president or president pro tempore of the senate, house or senate
minority floor leader, or legislative council to serve on any research, study, or survey
committee or commission is entitled, when authorized by the legislative council, to a
per diem instead of subsistence of $75 per day during the 2013-2015 biennium. In
addition to the per diem, such a person is entitled to mileage reimbursement, at the
rate specified for members of the general assembly, for each mile necessarily traveled
from the person's usual place of residence to the state capitol or other in-state site
of the committee, commission, or conference. However, reimbursement for any out-of-state
travel expenses claimed by lay members serving on research, study, or survey committees
or commissions under the jurisdiction of the legislative council shall be based
on SECTION 14 of this act, until the legislative council applies those travel policies
and procedures that govern legislators and their staffs to such lay members as authorized
elsewhere in this SECTION. The allowance and reimbursement permitted in this paragraph
shall be paid from the legislative council appropriations for legislative and lay member
travel unless otherwise provided for by a specific appropriation.

Included in the above appropriations for the legislative council and legislative
services agency are funds for the printing and distribution of documents
published by the legislative council. These documents include journals, bills,
resolutions, enrolled documents, the acts of the first and second regular sessions
of the 118th general assembly, the supplements to the Indiana Code for fiscal years
2013-2014 and 2014-2015, and the publication of the Indiana Administrative Code
and the Indiana Register. Upon completion of the distribution of the Acts and the
supplements to the Indiana Code, as provided in IC 2-6-1.5, remaining copies may
be sold at a price or prices periodically determined by the legislative council. If
the above appropriations for the printing and distribution of documents published
by the legislative council are insufficient to pay all of the necessary expenses
incurred, there are hereby appropriated such sums as may be necessary to pay such
expenses.

LEGISLATIVE COUNCIL CONTINGENCY FUND
Total Operating Expense
226,125

Disbursements from the fund may be made only for purposes approved by
the chairman and vice chairman of the legislative council.

The legislative services agency shall charge the following fees, unless the
legislative council sets these or other fees at different rates:
Annual subscription to the session document service for sessions ending in
odd-numbered years: $900

Annual subscription to the session document service for sessions ending in
even-numbered years: $500

Per page charge for copies of legislative documents: $0.15

Annual charge for interim calendar: $10

Daily charge for the journal of either house: $2

COUNCIL OF STATE GOVERNMENTS ANNUAL DUES
Other Operating Expense
167,863
174,578
NATIONAL CONFERENCE OF STATE LEGISLATURES ANNUAL DUES
Other Operating Expense
209,737
209,737
NATIONAL CONFERENCE OF INSURANCE LEGISLATORS ANNUAL DUES
Other Operating Expense
10,000
10,000

The above appropriation for the supreme court personal services includes the subsistence
allowance as provided by IC 33-38-5-8. The supreme court, through its technology
committee, shall review the requests of the court of appeals and the public defender
commission for a case management system.

The above appropriations for county prosecutors' salaries represent the amounts authorized

by IC 33-39-6-5 and that are to be paid from the state general fund.

In addition to the appropriations for local judges' salaries and for county prosecutors'
salaries, there are hereby appropriated for personal services the amounts that the
state is required to pay for salary changes or for additional courts created by
the 118th general assembly.

The above appropriation is made in addition to the distribution authorized by
IC 33-37-7-9(c) for the purpose of reimbursing counties for indigent defense services
provided to a defendant. The division of state court administration of the supreme
court of Indiana shall provide staff support to the commission and shall administer
the public defense fund. The administrative costs may come from the public defense
fund. Any balance in the public defense fund is appropriated to the public defender
commission.

GUARDIAN AD LITEM
Total Operating Expense
2,970,248
2,970,248

The division of state court administration shall use the foregoing appropriation
to administer an office of guardian ad litem and court appointed special advocate
services and to provide matching funds to counties that are required to implement,
in courts with juvenile jurisdiction, a guardian ad litem and court appointed special
advocate program for children who are alleged to be victims of child abuse or neglect
under IC 31-33 and to administer the program. A county may use these matching funds
to supplement amounts collected as fees under IC 31-40-3 to be used for the operation
of guardian ad litem and court appointed special advocate programs. The county fiscal
body shall appropriate adequate funds for the county to be eligible for these matching
funds. In each fiscal year, the office of guardian ad litem shall set aside at least
thirty thousand dollars ($30,000) from the foregoing appropriation to provide older
youth foster care.

ADULT GUARDIANSHIP
Total Operating Expense
500,000
500,000
The above appropriation shall be used to provide matching funds to counties that
implement in courts with probate jurisdiction a volunteer advocate program for seniors
and incapacitated adults who are appointed a guardian under IC 29. The above appropriation
also includes funds to develop and maintain an adult guardianship registry to serve as
a data repository for adult guardianship cases and guardians appointed by the courts.

CIVIL LEGAL AID
Total Operating Expense
1,500,000
1,500,000

The above funds include the appropriation provided in IC 33-24-12-7.

SPECIAL JUDGES - COUNTY COURTS
Total Operating Expense
149,000
149,000

If the funds appropriated above for special judges of county courts are insufficient
to pay all of the necessary expenses that the state is required to pay under IC 34-35-1-4,
there are hereby appropriated such further sums as may be necessary to pay these
expenses.

The above appropriations to the Medicaid fraud unit are the state's matching share
of funding for the state Medicaid fraud control unit under IC 4-6-10 as prescribed
by 42 U.S.C. 1396b(q). Augmentation allowed from collections.

The above appropriations for governors' and governors' surviving spouses' pensions
are made under IC 4-3-3.

FOR THE STATE BOARD OF ACCOUNTS
Personal Services
17,918,941
17,918,941

Other Operating Expense
353,348
353,348

FOR THE STATE BUDGET COMMITTEE
Total Operating Expense
46,000
46,000

Notwithstanding IC 4-12-1-11(b), the salary per diem of the legislative members of
the budget committee is an amount equal to one hundred fifty percent (150%) of the
legislative business per diem allowance. If the above appropriations are insufficient
to carry out the necessary operations of the budget committee, there are hereby
appropriated such further sums as may be necessary.

FOR THE OFFICE OF MANAGEMENT AND BUDGET
Personal Services
795,059
795,059
Other Operating Expense
155,855
155,855

The foregoing departmental and institutional emergency contingency fund appropriation
is subject to allotment to departments, institutions, and all state agencies by the budget
agency with the approval of the governor. These allocations may be made upon written
request of proper officials, showing that contingencies exist that require additional
funds for meeting necessary expenses. The budget committee shall be advised of each
transfer request and allotment.

The foregoing personal services/fringe benefits contingency fund appropriation is
subject to allotment to the judicial branch, statewide elected officials, departments,
institutions, and all state agencies by the budget agency with the approval of the
governor.

The foregoing personal services/fringe benefits contingency fund appropriation may
be used only for salary increases, fringe benefit increases, an employee leave conversion
program, or a state retiree health program for state employees and may not be used for
any other purpose.
The foregoing personal services/fringe benefits contingency fund appropriation does
not revert at the end of the biennium but remains in the personal services/fringe
benefits contingency fund.

Of the foregoing appropriation, $6,700,000 shall be paid to the Indiana public retirement
system (IC 5-10.5-3-1) in FY 2014.

The foregoing appropriation for the retiree health plan:
(1) is to fund employer contributions and benefits provided under IC 5-10-8.5;
(2) does not revert at the end of any state fiscal year but remains available for
the purposes of the appropriation in subsequent state fiscal years; and
(3) is not subject to transfer to any other fund or to transfer, assignment,
or reassignment for any other use or purpose by the state board of finance
notwithstanding IC 4-9.1-1-7 and IC 4-13-2-23 or by the budget agency
notwithstanding IC 4-12-1-12 or any other law.

The budget agency may transfer appropriations from federal or dedicated funds to
the trust fund to accrue funds to pay benefits to employees that are not paid from the
general fund.

The above appropriation shall be used to conduct a study of the feasibility of establishing
a teaching and trauma hospital in Northwest Indiana. The budget agency shall report

the findings of the study to the budget committee.

FOR THE INDIANA PUBLIC RETIREMENT SYSTEM
PUBLIC SAFETY PENSION
Total Operating Expense
145,000,000
175,000,000
Augmentation Allowed.

FOR THE TREASURER OF STATE
Personal Services
806,962
806,962
Other Operating Expense
31,133
31,133

The treasurer of state, the board for depositories, the Indiana commission for higher
education, and the commission for higher education shall cooperate and provide
to the Indiana education savings authority the following:
(1) Clerical and professional staff and related support.
(2) Office space and services.
(3) Reasonable financial support for the development of rules, policies,
programs, and guidelines, including authority operations and travel.

E. TAX ADMINISTRATION

FOR THE DEPARTMENT OF REVENUE
COLLECTION AND ADMINISTRATION
From the General Fund
55,271,373
53,501,963
From the Motor Carrier Regulation Fund (IC 8-2.1-23)
752,284
752,284
Augmentation allowed from the Motor Carrier Regulation Fund.

The amounts specified from the General Fund and the Motor Carrier Regulation Fund
are for the following purposes:

With the approval of the governor and the budget agency, the department shall annually
reimburse the state general fund for expenses incurred in support of the collection of
dedicated fund revenue according to the department's cost allocation plan.

With the approval of the governor and the budget agency, the foregoing sums for the
department of state revenue may be augmented to an amount not exceeding in total,
together with the above specific amounts, one and one-tenth percent (1.1%) of the
amount of money collected by the department of state revenue from taxes and fees.

OUTSIDE COLLECTIONS
Total Operating Expense
5,200,000
5,200,000

With the approval of the governor and the budget agency, the foregoing sums for the
department of state revenue's outside collections may be augmented to an amount not
exceeding in total, together with the above specific amounts, one and one-tenth percent
(1.1%) of the amount of money collected by the department from taxes and fees.

In addition to the foregoing appropriations, there is hereby appropriated to the
department of revenue motor fuel tax division from the motor vehicle highway fund
an amount sufficient to pay claims for refunds on license-fee-exempt motor vehicle
fuel as provided by law. The sums above appropriated for the operation of the motor
fuel tax division, together with all refunds for license-fee-exempt motor vehicle
fuel, shall be paid from the receipts of those license fees before they are distributed
as provided by IC 6-6-1.1.

FOR THE INDIANA GAMING COMMISSION
From the State Gaming Fund (IC 4-33-13-3)
2,770,402
2,770,402
From the Gaming Investigations Fund
600,000
600,000

The amounts specified from the state gaming fund and gaming investigations fund
are for the following purposes:

The foregoing appropriations to the Indiana gaming commission are made from revenues
accruing to the state gaming fund under IC 4-33 before any distribution is made
under IC 4-33-13-5.
Augmentation allowed.

The foregoing appropriations to the Indiana horse racing commission are made from
revenues accruing to the Indiana horse racing commission before any distribution
is made under IC 4-31-9.
Augmentation allowed.

The foregoing appropriations to the standardbred advisory board are made from
revenues accruing to the Indiana horse racing commission before any distribution
is made under IC 4-31-9.
Augmentation allowed.

The pay phone fund is established for the procurement of hardware, software, and
related equipment and services needed to expand and enhance the state campus backbone
and other central information technology initiatives. Such procurements may include,
but are not limited to, wiring and rewiring of state offices, Internet services, video
conferencing, telecommunications, application software, and related services.
Notwithstanding IC 5-22-23-5, the fund consists of the net proceeds received from
contracts with companies providing phone services at state institutions and other
state properties. The fund shall be administered by the budget agency. Money in
the fund may be spent by the office in compliance with a plan approved by the budget
agency. Any money remaining in the fund at the end of any fiscal year does not revert
to the general fund or any other fund but remains in the pay phone fund.

FOR THE COMMISSION ON PUBLIC RECORDS
Personal Services
1,433,464
1,433,464
Other Operating Expense
94,941
94,941

FOR THE OFFICE OF THE PUBLIC ACCESS COUNSELOR
Personal Services
123,079
123,079
Other Operating Expense
11,353
11,353

FOR THE OFFICE OF STATE-BASED INITIATIVES
Total Operating Expense
88,984
88,984

G. OTHER

FOR THE COMMISSION ON UNIFORM STATE LAWS
Total Operating Expense
74,276
74,276

FOR THE OFFICE OF INSPECTOR GENERAL
Personal Services
1,079,259
1,079,259
Other Operating Expense
110,096
110,096
STATE ETHICS COMMISSION
Other Operating Expense
6,111
6,111

The above appropriation for community corrections programs is not subject to transfer
to any other fund or to transfer, assignment, or reassignment for any other use or
purpose by the state board of finance notwithstanding IC 4-9.1-1-7 and IC 4-13-2-23
or by the budget agency notwithstanding IC 4-12-1-12 or any other law.

Notwithstanding IC 4-13-2-19 and any other law, the above appropriation for community
corrections programs does not revert to the general fund or another fund at the close
of a state fiscal year but remains available in subsequent state fiscal years for the
purposes of the appropriation.

The above appropriation shall be used for minimum security release programs, transition
programs, mentoring programs, and supervision of and assistance to adult and juvenile
offenders to promote the successful integration of the offender into the community.

Disbursements from the fund shall be made for the purpose of reimbursing sheriffs
for the cost of incarcerating in county jails persons convicted of felonies to the
extent that such persons are incarcerated for more than five (5) days after the
day of sentencing or the date upon which the department of correction receives the
abstract of judgment and sentencing order, whichever occurs later, at a rate to
be determined by the department of correction and approved by the state budget agency.
The rate shall be based upon programming provided, and shall be $35 per day. In
addition to the per diem, the state shall reimburse the sheriffs for expenses determined
by the sheriff to be medically necessary medical care to the convicted persons.
However, if the sheriff or county receives money with respect to a convicted person
(from a source other than the county), the per diem or medical expense reimbursement
with respect to the convicted person shall be reduced by the amount received. A
sheriff shall not be required to comply with IC 35-38-3-4(a) or transport convicted
persons within five (5) days after the day of sentencing if the department of correction
does not have the capacity to receive the convicted person.

FOR THE STATE BUDGET AGENCY
MEDICAL SERVICE PAYMENTS
Total Operating Expense
25,000,000
25,000,000
These appropriations for medical service payments are made to pay for services
determined to be medically necessary for committed individuals, patients and
students of institutions under the jurisdiction of the department of correction,
the state department of health, the division of mental health and addiction, the
school for the blind and visually impaired, the school for the deaf, the division
of disability and rehabilitative services, or the division of aging if the services
are provided outside these institutions. These appropriations may not be used for
payments for medical services that are covered by IC 12-16 unless these services
have been approved under IC 12-16. These appropriations shall not be used for
payment for medical services which are payable from an appropriation in this act
for the state department of health, the division of mental health and addiction, the
school for the blind and visually impaired, the school for the deaf, the division of
disability and rehabilitative services, the division of aging, or the department
of correction, or that are reimbursable from funds for medical assistance under
IC 12-15. If these appropriations are insufficient to make these medical service
payments, there is hereby appropriated such further sums as may be necessary.

Direct disbursements from the above contingency fund are not subject to the
provisions of IC 4-13-2.

FOR THE INDIANA STATE POLICE AND MOTOR CARRIER INSPECTION
From the General Fund
120,660,465
120,660,465
From the Motor Carrier Regulation Fund (IC 8-2.1-23)
4,246,537
4,246,537
Augmentation allowed from the general fund and the motor carrier regulation fund.

The amounts specified from the General Fund and the Motor Carrier Regulation Fund
are for the following purposes:

The above appropriations for personal services and other operating expense include
funds to continue the state police minority recruiting program.

The foregoing appropriations for the Indiana state police and motor carrier inspection
include funds for the police security detail to be provided to the Indiana state fair
board. However, amounts actually expended to provide security for the Indiana state
fair board as determined by the budget agency shall be reimbursed by the Indiana
state fair board to the state general fund.

FORENSIC AND HEALTH SCIENCES LABORATORIES
From the General Fund
9,820,346
9,820,346
From the Motor Carrier Regulation Fund (IC 8-2.1-23)
345,641
345,641
Augmentation allowed from the general fund and the motor carrier regulation fund.

The amounts specified from the General Fund and the Motor Carrier Regulation Fund
are for the following purposes:

The above appropriations for enforcement aid are to meet unforeseen emergencies of a
confidential nature. They are to be expended under the direction of the superintendent
and to be accounted for solely on the superintendent's authority.

The above appropriations shall be paid into the state police pension fund provided for
in IC 10-12-2 in twelve (12) equal installments on or before July 30 and on or before
the 30th of each succeeding month thereafter.

All benefits to members shall be paid by warrant drawn on the treasurer of state
by the auditor of state on the basis of claims filed and approved by the trustees
of the state police pension and benefit funds created by IC 10-12-2.

SUPPLEMENTAL PENSION
General Fund

Total Operating Expense
2,982,000
2,882,000
Augmentation allowed.

If the above appropriations for supplemental pension for any one (1) year are greater
than the amount actually required under the provisions of IC 10-12-5, then the excess
shall be returned proportionately to the funds from which the appropriations were
made. If the amount actually required under IC 10-12-5 is greater than the above
appropriations, then, with the approval of the governor and the budget agency, those
sums may be augmented from the general fund.

To facilitate the duties of the Indiana criminal justice institute as outlined in
IC 5-2-6-3, the above appropriation is not subject to the provisions of IC 4-9.1-1-7
when used to support other state agencies through the awarding of state match dollars.

Of the above appropriations for the Indiana safe schools program, $1,071,316 is
appropriated annually to provide grants to school corporations for school safe haven
programs, emergency preparedness programs, and school safety programs, and
$750,000 is appropriated annually for use in providing training to school safety
specialists.

The above appropriation for the office of traffic safety may be used to cover the
state match requirement for this program according to the current highway safety
plan approved by the governor and the budget agency.

Augmentation allowed. The full amount of the above appropriations shall be distributed
to rape crisis centers in Indiana without any deduction of personal services or other
operating expenses of any state agency.

FOR THE LAW ENFORCEMENT TRAINING ACADEMY
From the General Fund
1,987,206
1,987,206
From the Law Enforcement Training Fund (IC 5-2-1-13(b))
2,191,286
2,191,286
Augmentation allowed from the Law Enforcement Training Fund.
The amounts specified from the General Fund and the Law Enforcement Training Fund
are for the following purposes:

The above appropriations for occupational safety and health and M.I.S. research and
statistics reflect only the general fund portion of the total program costs of the
Indiana occupational safety and health plan as approved by the U.S. department of
labor. It is the intention of the general assembly that the Indiana department of
labor make application to the federal government for the federal share of the total
program costs.

FOR THE CIVIL RIGHTS COMMISSION
Personal Services
1,715,970
1,715,970
Other Operating Expense
115,850
115,850
The above appropriation for the Indiana civil rights commission reflects only the
general fund portion of the total program costs for the processing of employment
and housing discrimination complaints. It is the intention of the general assembly
that the commission make application to the federal government for funding based
upon the processing of employment and housing discrimination complaints.

The amounts specified from the general fund and the worker's compensation supplemental
administrative fund are for the following purposes:
Personal Services
1,805,237
1,805,237
Other Operating Expense
108,880
108,880

All revenues accruing from state and local units of government and from private
utilities and industrial concerns as a result of water resources study projects,
and as a result of topographic and other mapping projects, shall be deposited into
the state general fund, and such receipts are hereby appropriated, in addition to
the foregoing amounts, for water resources studies.

The amounts specified from the General Fund and the State Forestry Fund are for
the following purposes:

Personal Services
6,600,089
6,600,089
Other Operating Expense
2,854,225
2,604,225
In addition to any of the foregoing appropriations for the department of natural
resources, any federal funds received by the state of Indiana for support of approved
outdoor recreation projects for planning, acquisition, and development under the
provisions of the federal Land and Water Conservation Fund Act, P.L.88-578, are
appropriated for the uses and purposes for which the funds were paid to the state,
and shall be distributed by the department of natural resources to state agencies
and other governmental units in accordance with the provisions under which the
funds were received.

The above appropriation for institutional road construction may be used for road
and bridge construction, relocation, and other related improvement projects at state-owned
properties managed by the department of natural resources.

B. OTHER NATURAL RESOURCES

FOR THE INDIANA STATE MUSEUM AND HISTORIC SITES CORPORATION
General Fund
Total Operating Expense
7,603,276
7,603,276
Indiana State Museum and Historic Sites Corp.
Total Operating Expense
2,221,529
2,221,529

The above appropriation includes $75,000 each state fiscal year for the Grissom
Air Museum.

FOR THE WORLD WAR MEMORIAL COMMISSION
Personal Services
572,012
572,012
Other Operating Expense
283,669
283,669
All revenues received as rent for space in the buildings located at 777 North Meridian
Street and 700 North Pennsylvania Street, in the city of Indianapolis, that exceed the
costs of operation and maintenance of the space rented, shall be paid into the general
fund. The American Legion shall provide for the complete maintenance of the interior
of these buildings.

FOR THE WHITE RIVER STATE PARK DEVELOPMENT COMMISSION
Total Operating Expense
790,012
790,012

FOR THE MAUMEE RIVER BASIN COMMISSION
Total Operating Expense
55,784
55,784

FOR THE ST. JOSEPH RIVER BASIN COMMISSION
Total Operating Expense
55,784
55,784

FOR THE KANKAKEE RIVER BASIN COMMISSION
Total Operating Expense
55,784
55,784

The above appropriations for auto emissions testing are the maximum amounts available
for this purpose. If it becomes necessary to conduct additional tests in other locations,
the above appropriations shall be prorated among all locations.

Notwithstanding any other law, with the approval of the governor and the budget
agency, the above appropriations for hazardous waste management permitting,
wetlands protection, groundwater program, underground storage tank program,
air management operating, asbestos trust operating, water management nonpermitting,
safe drinking water program, and any other appropriation eligible to be included in a
performance partnership grant may be used to fund activities incorporated into a
performance partnership grant between the United States Environmental Protection
Agency and the department of environmental management.

Of the above appropriations, the office of tourism shall distribute $500,000 each
year to the Indiana sports corporation to promote the hosting of amateur sporting
events in Indiana cities. Funds may be released after review by the budget committee.

The office may retain any advertising revenue generated by the office. Any revenue
received is in addition to the above appropriation and is appropriated for the purposes
of the office.

Of the above appropriation, up to $500,000 each year shall be used to match other
funds from the Association of Indiana Convention and Visitors Bureaus or any other
organizations for purposes of statewide tourism marketing.

OFFICE OF DEFENSE DEVELOPMENT
Total Operating Expense
641,470
647,485
OFFICE OF COMMUNITY AND RURAL AFFAIRS
Total Operating Expense
1,000,000
1,000,000

FOR THE OFFICE OF ENERGY DEVELOPMENT
Total Operating Expense
183,000
183,000

FOR THE SECRETARY OF COMMERCE
Total Operating Expense
300,000
300,000

FOR THE INDIANA ECONOMIC DEVELOPMENT CORPORATION
ADMINISTRATIVE AND FINANCIAL SERVICES
General Fund
Total Operating Expense
6,423,392
6,423,392
Training 2000 Fund (IC 5-28-7-5)
Total Operating Expense
185,630
185,630
Industrial Development Grant Fund (IC 5-28-25-4)
Total Operating Expense
52,139
52,139
The above appropriation includes funding for the development and implementation
of a transparency portal.

IN 21ST CENTURY RESEARCH & TECHNOLOGY FUND
General Fund
Total Operating Expense
20,000,000
20,000,000

Of the above appropriation, the Indiana Economic Development Corporation shall allocate
up to $2,500,000 each year to Indiana University in order to support research activities
that may have an economic impact to the state. The Indiana Commission for Higher
Education and the Indiana Economic Development Corporation shall jointly develop
policies and procedures regarding the allocation of state support for research activities.

The Indiana Economic Development Corporation Board must approve each award made
from the above appropriation. No awards may be disbursed until a comprehensive plan
for expending the funds has been reviewed by the budget committee and approved by
the director of the Office of Management and Budget. The Indiana Economic Development
Corporation shall annually report to the budget committee on award amounts and activities
of the Indiana Biosciences Research Institute.

It is the intent of the General Assembly that organizations that operate programs
that serve to reduce the unemployment rate and enhance the job skills of the
developmentally disabled are eligible to receive awards from the Skills Enhancement
Fund.

BUSINESS PROMOTION PROGRAM
Total Operating Expense
3,000,000
MOTORSPORTS IMPROVEMENT PROGRAM
Total Operating Expense
5,000,000
5,000,000
ECONOMIC DEVELOPMENT GRANT AND LOAN PROGRAM
Total Operating Expense
756,128
INDUSTRIAL DEVELOPMENT GRANT PROGRAM
Total Operating Expense
5,905,330

The housing and community development authority shall collect and report to the
family and social services administration (FSSA) all data required for FSSA to meet
the data collection and reporting requirements in 45 CFR Part 265.

Family and social services administration, division of family resources shall apply
all qualifying expenditures for individual development accounts deposits toward Indiana's
maintenance of effort under the federal Temporary Assistance for Needy Families (TANF)
program (45 CFR 260 et seq.).

It is the intent of the 2013 general assembly that the above appropriations for
adult education shall be the total allowable state expenditure for such program.
Therefore, if the expected disbursements are anticipated to exceed the total
appropriation for a state fiscal year, the department of workforce development
shall reduce the distributions proportionately.

DROPOUT PREVENTION
Total Operating Expense
6,000,000
6,000,000

The above appropriation shall be directed to programs that help to prevent students
from dropping out of school.

D. OTHER ECONOMIC DEVELOPMENT

FOR THE INDIANA STATE FAIR BOARD
STATE FAIR
Total Operating Expense
600,000
600,000

The appropriations are to be used solely for the promotion and development of public
transportation. The department of transportation shall allocate funds based on a
formula approved by the commissioner of the department of transportation.

The department of transportation may distribute public mass transportation funds
to an eligible grantee that provides public transportation in Indiana.

The state funds can be used to match federal funds available under the Federal Transit
Act (49 U.S.C. 1601, et seq.) or local funds from a requesting grantee.

Before funds may be disbursed to a grantee, the grantee must submit its request for
financial assistance to the department of transportation for approval. Allocations
must be approved by the governor and the budget agency after review by the budget
committee and shall be made on a reimbursement basis. Only applications for capital
and operating assistance may be approved. Only those grantees that have met the
reporting requirements under IC 8-23-3 are eligible for assistance under this
appropriation.

The above appropriations for highway operating and highway vehicle and road
maintenance equipment may be used for personal services, equipment, and other
operating expense, including the cost of transportation for the governor.

The above appropriations for the highway maintenance work program may be used for:
(1) materials for patching roadways and shoulders;
(2) repairing and painting bridges;
(3) installing signs and signals and painting roadways for traffic control;
(4) mowing, herbicide application, and brush control;
(5) drainage control;
(6) maintenance of rest areas, public roads on properties of the department
of natural resources, and driveways on the premises of all state facilities;
(7) materials for snow and ice removal;
(8) utility costs for roadway lighting; and
(9) other special maintenance and support activities consistent with the
highway maintenance work program.

The above appropriations for the capital improvements program may be used for:
(1) bridge rehabilitation and replacement;
(2) road construction, reconstruction, or replacement;
(3) construction, reconstruction, or replacement of travel lanes, intersections,
grade separations, rest parks, and weigh stations;
(4) relocation and modernization of existing roads;
(5) resurfacing;
(6) erosion and slide control;
(7) construction and improvement of railroad grade crossings, including
the use of the appropriations to match federal funds for projects;
(8) small structure replacements;
(9) safety and spot improvements; and
(10) right-of-way, relocation, and engineering and consulting expenses
associated with any of the above types of projects.

The appropriations for highway operating, highway vehicle and road maintenance
equipment, highway buildings and grounds, the highway planning and research
program, the highway maintenance work program, and highway capital improvements
are appropriated from estimated revenues, which include the following:
(1) Funds distributed to the state highway fund from the motor vehicle highway account
under IC 8-14-1-3(4).
(2) Funds distributed to the state highway fund from the highway, road and street
fund under IC 8-14-2-3.
(3) All fees and miscellaneous revenues deposited in or accruing to the state highway
fund under IC 8-23-9-54.
(4) Any unencumbered funds carried forward in the state highway fund from any previous
fiscal year.
(5) All other funds appropriated or made available to the department of transportation
by the general assembly.

If funds from sources set out above for the department of transportation exceed
appropriations from those sources to the department, the excess amount is hereby
appropriated to be used for formal contracts with approval of the governor and the
budget agency.

If there is a change in a statute reducing or increasing revenue for department use,
the budget agency shall notify the auditor of state to adjust the above appropriations
to reflect the estimated increase or decrease. Upon the request of the department,
the budget agency, with the approval of the governor, may allot any increase in
appropriations to the department for formal contracts.
If the department of transportation finds that an emergency exists or that an
appropriation will be insufficient to cover expenses incurred in the normal
operation of the department, the budget agency may, upon request of the department,
and with the approval of the governor, transfer funds from revenue sources set out
above from one (1) appropriation to the deficient appropriation. No appropriation
from the state highway fund may be used to fund any toll road or toll bridge project
except as specifically provided for under IC 8-15-2-20.

HIGHWAY PLANNING AND RESEARCH PROGRAM
State Highway Fund (IC 8-23-9-54)
Total Operating Expense
2,500,000
2,500,000

The above appropriations for the state highway road construction and improvement
program are appropriated from the state highway road construction and improvement
fund provided in IC 8-14-10-5 and may include any unencumbered funds carried
forward from any previous fiscal year. The funds shall be first used for payment
of rentals and leases relating to projects under IC 8-14.5. If any funds remain, the
funds may be used for the following purposes:
(1) road and bridge construction, reconstruction, or replacement;
(2) construction, reconstruction, or replacement of travel lanes, intersections,
and grade separations;
(3) relocation and modernization of existing roads; and
(4) right-of-way, relocation, and engineering and consulting expenses associated
with any of the above types of projects.

The above appropriations for the crossroads 2000 program are appropriated from the
crossroads 2000 fund provided in IC 8-14-10-9 and may include any unencumbered
funds carried forward from any previous fiscal year. The funds shall be first used
for payment of rentals and leases relating to projects under IC 8-14-10-9. If any
funds remain, the funds may be used for the following purposes:
(1) road and bridge construction, reconstruction, or replacement;
(2) construction, reconstruction, or replacement of travel lanes, intersections, and
grade separations;
(3) relocation and modernization of existing roads; and
(4) right-of-way, relocation, and engineering and consulting expenses associated
with any of the above types of projects.

The department may establish an account to be known as the "local government revolving
account". The account is to be used to administer the federal-local highway construction
program. All contracts issued and all funds received for federal-local projects under
this program shall be entered into this account.

If the federal apportionments for the fiscal years covered by this act exceed the above
estimated appropriations for the department or for local governments, the excess
federal apportionment is hereby appropriated for use by the department with the
approval of the governor and the budget agency.

The department shall bill, in a timely manner, the federal government for all department
payments that are eligible for total or partial reimbursement.

The department may let contracts and enter into agreements for construction and
preliminary engineering during each year of the 2013-2015 biennium that obligate
not more than one-third (1/3) of the amount of state funds estimated by the department
to be available for appropriation in the following year for formal contracts and consulting
engineers for the capital improvements program.

Under IC 8-23-5-7(a), the department, with the approval of the governor, may construct
and maintain roadside parks and highways where highways will connect any state highway
now existing, or hereafter constructed, with any state park, state forest preserve, state
game preserve, or the grounds of any state institution. There is appropriated to the
department of transportation an amount sufficient to carry out the provisions of this
paragraph. Under IC 8-23-5-7(d), such appropriations shall be made from the motor
vehicle highway account before distribution to local units of government.

After review by the budget committee and approval by the budget agency, money appropriated
to the department of transportation under this SECTION for any purpose may instead be
expended by the department to carry out an agreement with the National Railroad
Passenger Corporation (AMTRAK) to provide service in Indiana and to provide for
the purchase of equipment.

LOCAL TECHNICAL ASSISTANCE AND RESEARCH

Under IC 8-14-1-3(6), there is appropriated to the department of transportation an amount
sufficient for:
(1) the program of technical assistance under IC 8-23-2-5(6); and
(2) the research and highway extension program conducted for local government under
IC 8-17-7-4.

The department shall develop an annual program of work for research and extension in
cooperation with those units being served, listing the types of research and educational
programs to be undertaken. The commissioner of the department of transportation may
make a grant under this appropriation to the institution or agency selected to conduct
the annual work program. Under IC 8-14-1-3(6), appropriations for the program of
technical assistance and for the program of research and extension shall be taken
from the local share of the motor vehicle highway account.

Under IC 8-14-1-3(7) there is hereby appropriated such sums as are necessary to
maintain a sufficient working balance in accounts established to match federal and
local money for highway projects. These funds are appropriated from the following
sources in the proportion specified:
(1) one-half (1/2) from the forty-seven percent (47%) set aside of the motor vehicle
highway account under IC 8-14-1-3(7); and
(2) for counties and for those cities and towns with a population greater than five
thousand (5,000), one-half (1/2) from the distressed road fund under IC 8-14-8-2.

The foregoing appropriations for Medicaid current obligations and for Medicaid
administration are for the purpose of enabling the office of Medicaid policy and
planning to carry out all services as provided in IC 12-8-6.5. In addition to the above
appropriations, all money received from the federal government and paid into the
state treasury as a grant or allowance is appropriated and shall be expended by
the office of Medicaid policy and planning for the respective purposes for which
the money was allocated and paid to the state. Subject to the provisions of IC 12-8-1.5-11,
if the sums herein appropriated for Medicaid current obligations and for Medicaid
administration are insufficient to enable the office of Medicaid policy and planning
to meet its obligations, then there is appropriated from the general fund such further
sums as may be necessary for that purpose, subject to the approval of the governor
and the budget agency.

Two hundred seventy-five thousand dollars ($275,000) of the above appropriation
for the state fiscal year beginning July 1, 2013, and ending June 30, 2014, and
two hundred seventy-five thousand dollars ($275,000) of the above appropriation
for the state fiscal year beginning July 1, 2014, and ending June 30, 2015, shall
be distributed in the state fiscal year to neighborhood based community service
programs.
CHILD PSYCHIATRIC SERVICES FUND
Total Operating Expense
16,923,760
16,923,760

The above appropriation includes $500,000 each state fiscal year for the Family
and Social Services Administration to develop and implement an evidence-based program
model that partners with elementary and high schools to provide social services
to children, parents, caregivers, teachers, and the community to prevent substance
abuse, promote healthy behaviors, and maximize student success.

The above appropriation from the Tobacco Master Settlement Agreement Fund is in
addition to other funds. The above appropriations for comprehensive community mental
health services include the intragovernmental transfers necessary to provide the
nonfederal share of reimbursement under the Medicaid rehabilitation option.

The comprehensive community mental health centers shall submit their proposed annual
budgets (including income and operating statements) to the budget agency on or before
August 1 of each year. All federal funds shall be applied in augmentation of the foregoing
funds rather than in place of any part of the funds. The office of the secretary, with the
approval of the budget agency, shall determine an equitable allocation of the appropriation
among the mental health centers.

The above appropriation includes $500,000 each fiscal year to support a two-year
drug rehabilitation demonstration project with the Jefferson County community corrections
program. The Division of Mental Health and Addiction and Jefferson County community
corrections shall jointly develop a model drug rehabilitation program for offenders
convicted of drug-related offenses. At the conclusion of the two-year demonstration
project, the Division shall provide a report to the General Assembly that includes
a description of the program's structure, statistics that measure the results of
the program, and a full accounting of the costs of the program including the average
cost per offender. The report shall include recommendations on whether the model
program should be expanded to include additional community corrections agencies.

The federal share of revenue accruing to the state mental health institutions under
IC 12-15, based on the applicable Federal Medical Assistance Percentage (FMAP),
shall be deposited in the mental health fund established by IC 12-24-14, and the
remainder shall be deposited in the general fund.

In addition to the above appropriations, each institution may qualify for an additional
appropriation, or allotment, subject to approval of the governor and the budget agency,
from the mental health fund of up to twenty percent (20%), but not to exceed $50,000
in each fiscal year, of the amount by which actual net collections exceed an amount
specified in writing by the division of mental health and addiction before July 1 of
each year beginning July 1, 2013.

The foregoing appropriations for information systems/technology, education
and training, Temporary Assistance for Needy Families (TANF), and child care
services are for the purpose of enabling the division of family resources to carry
out all services as provided in IC 12-14. In addition to the above appropriations,
all money received from the federal government and paid into the state treasury
as a grant or allowance is appropriated and shall be expended by the division of
family resources for the respective purposes for which such money was allocated
and paid to the state.

The foregoing appropriations for C.H.O.I.C.E. In-Home Services include intragovernmental
transfers to provide the nonfederal share of the Medicaid aged and disabled waiver.

The intragovernmental transfers for use in the Medicaid aged and disabled waiver
may not exceed in the state fiscal year beginning July 1, 2013, and ending June
30, 2014, $18,000,000 and in the state fiscal year beginning July 1, 2014, and ending
June 30, 2015, $18,000,000.

The division of aging shall conduct an annual evaluation of the cost effectiveness
of providing home and community-based services. Before January of each year, the
division shall submit a report to the budget committee, the budget agency, and the
legislative council that covers all aspects of the division's evaluation and such
other information pertaining thereto as may be requested by the budget committee,
the budget agency, or the legislative council, including the following:
(1) the number and demographic characteristics of the recipients of home and
community-based services during the preceding fiscal year, including a separate
count of individuals who received no services other than case management services
(as defined in 455 IAC 2-4-10) during the preceding fiscal year;
(2) the total cost and per recipient cost of providing home and community-based
services during the preceding fiscal year.

The division shall obtain from providers of services data on their costs and expenditures
regarding implementation of the program and report the findings to the budget committee,
the budget agency, and the legislative council. The report to the legislative council must
be in an electronic format under IC 5-14-6.

The above appropriations for client services include the intragovernmental transfers
necessary to provide the nonfederal share of reimbursement under the Medicaid program
for day services provided to residents of group homes and nursing facilities.

In the development of new community residential settings for persons with developmental
disabilities, the division of disability and rehabilitative services must give priority to the
appropriate placement of such persons who are eligible for Medicaid and currently
residing in intermediate care or skilled nursing facilities and, to the extent permitted
by law, such persons who reside with aged parents or guardians or families in crisis.

These funds shall be used for eligible expenses according to IC 16-21-7-3 for tuberculosis
patients for whom there are no other sources of reimbursement, including patient
resources, health insurance, medical assistance payments, and hospital care for the
indigent.

Personal services augmentation allowed in amounts not to exceed revenue from health
facilities license fees or from health care providers (as defined in IC 16-18-2-163) fee
increases or those adopted by the Executive Board of the Indiana State Department of
Health under IC 16-19-3.

The above appropriation includes $200,000 in state fiscal year 2014 for the Riggs
Community Health Center in Lafayette. The department shall disperse the funds within
30 days of receiving a written request from the Riggs Community Health Center.

The amount appropriated from the tobacco master settlement agreement fund is in
lieu of the appropriation provided for this purpose in IC 6-7-1-30.5 or any other law.
Of the above appropriations for the local health maintenance fund, $60,000 each year
shall be used to provide additional funding to adjust funding through the formula in
IC 16-46-10 to reflect population increases in various counties. Money appropriated
to the local health maintenance fund must be allocated under the following schedule
each year to each local board of health whose application for funding is approved by
the state department of health:

A minimum of 90% of the above appropriations shall be used for grants to local
agencies and other entities with programs designed to reduce smoking.

FOR THE INDIANA SCHOOL FOR THE BLIND AND VISUALLY IMPAIRED
Personal Services
9,638,808
9,638,808
Other Operating Expense
936,050
936,050

FOR THE INDIANA SCHOOL FOR THE DEAF
Personal Services
13,277,055
13,277,055
Other Operating Expense
2,216,939
2,137,739

C. VETERANS' AFFAIRS

FOR THE INDIANA DEPARTMENT OF VETERANS' AFFAIRS
Personal Services
543,845
543,845
Other Operating Expense
52,349
52,349
DISABLED AMERICAN VETERANS OF WORLD WARS
Total Operating Expense
40,000
40,000
AMERICAN VETERANS OF WORLD WAR II, KOREA, AND VIETNAM
Total Operating Expense
30,000
30,000
VETERANS OF FOREIGN WARS
Total Operating Expense
30,000
30,000
VIETNAM VETERANS OF AMERICA
Total Operating Expense
20,000
MILITARY FAMILY RELIEF FUND
Military Family Relief Fund (IC 10-17-12-8)
Total Operating Expense
450,000
450,000

INDIANA VETERANS' HOME
From the General Fund
3,017,711
3,017,711
From the Veterans' Home Comfort and Welfare Program
13,370,531
13,370,531
From the IVH Medicaid Reimbursement Fund
7,353,100
7,353,100
From the IVH Medicare Revenue Fund
924,658
924,658
Augmentation allowed from the Comfort and Welfare Fund, IVH Medicaid Reimbursement
Fund, and the IVH Medicare Revenue Fund.

The amounts specified from the General Fund and the Veterans' Home Comfort and Welfare
Fund are for the following purposes:
Personal Services
17,336,495
17,336,495
Other Operating Expense
7,329,505
7,329,505

FOR INDIANA UNIVERSITY SCHOOL OF MEDICINE ON
THE CAMPUS OF THE UNIVERSITY OF SOUTHERN INDIANA
Total Operating Expense
1,659,798
1,659,798
THE CAMPUS OF INDIANA UNIVERSITY-PURDUE UNIVERSITY FORT WAYNE
Total Operating Expense
1,526,909
1,526,909
THE CAMPUS OF INDIANA UNIVERSITY-NORTHWEST
Total Operating Expense
2,169,183
2,169,183
THE CAMPUS OF PURDUE UNIVERSITY
Total Operating Expense
1,936,302
1,936,302
THE CAMPUS OF BALL STATE UNIVERSITY
Total Operating Expense
1,741,051
1,741,051
THE CAMPUS OF THE UNIVERSITY OF NOTRE DAME
Total Operating Expense
1,614,617
1,614,617
THE CAMPUS OF INDIANA STATE UNIVERSITY
Total Operating Expense
1,924,972
1,924,972

The Indiana University School of Medicine - Indianapolis shall submit to the Indiana
commission for higher education before May 15 of each year an accountability report
containing data on the number of medical school graduates who entered primary care
physician residencies in Indiana from the school's most recent graduating class.

Transfers of allocations between campuses to correct for errors in allocation among
the campuses of Indiana University can be made by the institution with the approval of
the commission for higher education and the budget agency. Indiana University shall
maintain current operations at all statewide medical education sites.

The above appropriations for medical education center expansion are intended to
help increase medical school class size on a statewide basis. The funds shall be
used to help increase enrollment and to provide clinical instruction. The funds
shall be distributed to the nine (9) existing medical education centers in proportion
to the increase in enrollment for each center.
INSTITUTE FOR THE STUDY OF DEVELOPMENTAL DISABILITIES
Total Operating Expense
2,105,824
2,105,824
GEOLOGICAL SURVEY
Total Operating Expense
2,729,199
2,729,199
LOCAL GOVERNMENT ADVISORY COMMISSION
Total Operating Expense
150,000
150,000
I-LIGHT NETWORK OPERATIONS
Build Indiana Fund (IC 4-30-17)
Total Operating Expense
1,471,833
1,471,833

Transfers of allocations between campuses to correct for errors in allocation among
the campuses of Purdue University can be made by the institution with the approval of
the commission for higher education and the budget agency.

FOR PURDUE UNIVERSITY
NEXT GENERATION MANUFACTURING COMPETITIVENESS CENTER
Total Operating Expense
2,500,000
2,500,000
DUAL CREDIT
Total Operating Expense
744,700
744,700
ANIMAL DISEASE DIAGNOSTIC LABORATORY SYSTEM
Total Operating Expense
4,449,706
3,570,446
The above appropriations shall be used to fund the animal disease diagnostic laboratory
system (ADDL), which consists of the main ADDL at West Lafayette, the bangs disease
testing service at West Lafayette, and the southern branch of ADDL Southern Indiana
Purdue Agricultural Center (SIPAC) in Dubois County. The above appropriations are
in addition to any user charges that may be established and collected under IC 21-46-3-5.
Notwithstanding IC 21-46-3-4, the trustees of Purdue University may approve reasonable
charges for testing for pseudorabies.

The above appropriations do not include funds for the course development grant program.

The sums herein appropriated to Indiana University, Purdue University, Indiana State
University, University of Southern Indiana, Ball State University, Vincennes University,
Ivy Tech Community College, and the Indiana Higher Education Telecommunications
System (IHETS) are in addition to all income of said institutions and IHETS, respectively,
from all permanent fees and endowments and from all land grants, fees, earnings, and
receipts, including gifts, grants, bequests, and devises, and receipts from any miscellaneous
sales from whatever source derived.

All such income and all such fees, earnings, and receipts on hand June 30, 2013, and
all such income and fees, earnings, and receipts accruing thereafter are hereby
appropriated to the boards of trustees or directors of the aforementioned institutions
and IHETS and may be expended for any necessary expenses of the respective institutions
and IHETS, including university hospitals, schools of medicine, nurses' training
schools, schools of dentistry, and agricultural extension and experimental stations.
However, such income, fees, earnings, and receipts may be used for land and structures
only if approved by the governor and the budget agency.
The foregoing appropriations to Indiana University, Purdue University, Indiana State
University, University of Southern Indiana, Ball State University, Vincennes University,
Ivy Tech Community College, and IHETS include the employers' share of Social Security
payments for university and IHETS employees under the public employees' retirement
fund, or institutions covered by the Indiana state teachers' retirement fund. The funds
appropriated also include funding for the employers' share of payments to the public
employees' retirement fund and to the Indiana state teachers' retirement fund at a rate
to be established by the retirement funds for both fiscal years for each institution and
for IHETS employees covered by these retirement plans.

The treasurers of Indiana University, Purdue University, Indiana State University,
University of Southern Indiana, Ball State University, Vincennes University, and
Ivy Tech Community College shall, at the end of each three (3) month period, prepare
and file with the auditor of state a financial statement that shall show in total all
revenues received from any source, together with a consolidated statement of disbursements
for the same period. The budget director shall establish the requirements for the form
and substance of the reports.

The reports of the treasurer also shall contain in such form and in such detail as the
governor and the budget agency may specify, complete information concerning receipts
from all sources, together with any contracts, agreements, or arrangements with any
federal agency, private foundation, corporation, or other entity from which such receipts
accrue.

All such treasurers' reports are matters of public record and shall include without
limitation a record of the purposes of any and all gifts and trusts with the sole
exception of the names of those donors who request to remain anonymous.

Notwithstanding IC 4-10-11, the auditor of state shall draw warrants to the treasurers
of Indiana University, Purdue University, Indiana State University, University of
Southern Indiana, Ball State University, Vincennes University, and Ivy Tech Community
College on the basis of vouchers stating the total amount claimed against each fund or
account, or both, but not to exceed the legally made appropriations.

Notwithstanding IC 4-12-1-14, for universities and colleges supported in whole or
in part by state funds, grant applications and lists of applications need only be
submitted upon request to the budget agency for review and approval or disapproval
and, unless disapproved by the budget agency, federal grant funds may be requested
and spent without approval by the budget agency. Each institution shall retain the
applications for a reasonable period of time and submit a list of all grant applications,
at least monthly, to the commission for higher education for informational purposes.

For all university special appropriations, an itemized list of intended expenditures,
in such form as the governor and the budget agency may specify, shall be submitted
to support the allotment request. All budget requests for university special appropriations
shall be furnished in a like manner and as a part of the operating budgets of the state
universities.

The trustees of Indiana University, the trustees of Purdue University, the trustees
of Indiana State University, the trustees of University of Southern Indiana, the
trustees of Ball State University, the trustees of Vincennes University, the trustees
of Ivy Tech Community College and the directors of IHETS are hereby authorized to
accept federal grants, subject to IC 4-12-1.

Fee replacement funds are to be distributed as requested by each institution, on
payment due dates, subject to available appropriations.

Of the foregoing appropriations for the medical education board-family practice
residency fund, $1,000,000 each year shall be used for grants for the purpose of
improving family practice residency programs serving medically underserved areas.

FOR THE COMMISSION FOR HIGHER EDUCATION
Total Operating Expense
3,001,737
3,001,737

For the higher education awards and freedom of choice grants made for the 2013-2015
biennium, the following guidelines shall be used, notwithstanding current administrative
rule or practice:
(1) The commission shall maintain the proportionality of award maxima for public,
private, and proprietary institutions when setting forth amounts under IC 21-12-1.7.
(2) Minimum Award: No actual award shall be less than $600.
(3) The commission shall reduce award amounts as necessary to stay within the appropriation.

Priority for awards made from the above appropriation shall be given first to eligible
students meeting TANF income eligibility guidelines as determined by the family and
social services administration and second to eligible students who received awards
from the part-time grant fund during the school year associated with the biennial budget
year. Funds remaining shall be distributed according to procedures established by the
commission. The maximum grant that an applicant may receive for a particular academic
term shall be established by the commission but shall in no case be greater than a grant
for which an applicant would be eligible under IC 21-12-3 if the applicant were a
full-time student. The commission shall collect and report to the family and social
services administration (FSSA) all data required for FSSA to meet the data collection
and reporting requirements in 45 CFR Part 265.

The family and social services administration, division of family resources, shall apply
all qualifying expenditures for the part-time grant program toward Indiana's maintenance
of effort under the federal Temporary Assistance for Needy Families (TANF) program
(45 CFR 260 et seq.).

The commission shall collect and report to the family and social services administration
(FSSA) all data required for FSSA to meet the data collection and reporting requirements
in 45 CFR 265.

Family and social services administration, division of family resources, shall apply
all qualifying expenditures for the 21st century scholars program toward Indiana's
maintenance of effort under the federal Temporary Assistance for Needy Families
(TANF) program (45 CFR 260 et seq.).

The above appropriations for national guard scholarship and any program reserves
existing on June 30, 2013, shall be the total allowable state expenditure for the
program in the 2013-2015 biennium. If the dollar amounts of eligible awards exceed
appropriations and program reserves, the commission shall develop a plan to ensure
that the total dollar amount does not exceed the above appropriations and any program
reserves.

FOR THE STATE BOARD OF EDUCATION
Total Operating Expense
3,010,716
3,010,716

The foregoing appropriations for the Indiana state board of education are for the
academic standards project to distribute copies of the academic standards and provide
teachers with curriculum frameworks; for special evaluation and research projects,
including national and international assessments; and for state board administrative
expenses. The above appropriation includes $60,000 each state fiscal year for the
Center for Evaluation and Education Policy.

FOR THE INDIANA CHARTER SCHOOL BOARD
Total Operating Expense
750,000
500,000

FOR THE INDIANA WORKS COUNCILS
Total Operating Expense
1,000,000
5,000,000

In the state fiscal year beginning July 1, 2013 and ending June 30, 2014, the above
appropriation may be used for planning and regional assessments. In the state fiscal
year beginning July 1, 2014, and ending June 30, 2015, $500,000 may be used for related
operating expenses and $4,500,000 may used as matching grants for private investments
into the career and technical education pathways.

The above appropriation may be used to provide grants to nonprofit organizations
that place new science, technology, engineering, and math teachers in elementary
and high schools located in underserved areas.

FOR THE DEPARTMENT OF EDUCATION

SUPERINTENDENT'S OFFICE
From the General Fund
8,495,125
8,495,125
From the Professional Standards Fund (IC 20-28-2-10)
395,000
395,000
Augmentation allowed from the Professional Standards Fund.

The amounts specified from the General Fund and the Professional Standards Fund
are for the following purposes:

The above appropriation includes funds to provide state support to educational service
centers.

PUBLIC TELEVISION DISTRIBUTION
Total Operating Expense
3,000,000
3,000,000

The above appropriations are for grants for public television. The Indiana Public
Broadcasting Stations, Inc., shall submit a distribution plan for the eight Indiana
public education television stations that shall be approved by the budget agency
after review by the budget committee. Of the above appropriations, $357,500 each
year shall be distributed equally among all of the public radio stations.

The foregoing appropriations shall be distributed by the department of education on a
monthly basis and in approximately equal payments to special education cooperatives,
area career and technical education schools, and other governmental entities that
received state teachers' Social Security distributions for certified education personnel
(excluding the certified education personnel funded through federal grants) during the
fiscal year beginning July 1, 1992, and ending June 30, 1993, and for the units under
the Indiana state teacher's retirement fund, the amount they received during the
2002-2003 state fiscal year for teachers' retirement. If the total amount to be distributed
is greater than the total appropriation, the department of education shall reduce each
entity's distribution proportionately.

DISTRIBUTION FOR TUITION SUPPORT
Total Operating Expense
6,622,800,000
6,691,600,000

The foregoing appropriations for distribution for tuition support are to be distributed
for tuition support, complexity grants, full-day kindergarten, special education
programs, career and technical education programs, honors grants, Mitch Daniels
early graduation scholarships, and choice scholarships in accordance with a statute
enacted for this purpose during the 2013 session of the general assembly.

If the above appropriations for distribution for tuition support are more than are
required under this SECTION, any excess shall revert to the general fund.

The above appropriations for tuition support shall be made each fiscal year under a
schedule set by the budget agency and approved by the governor. However, the schedule
shall provide for at least twelve (12) payments, that one (1) payment shall be made at
least every forty (40) days, and the aggregate of the payments in each fiscal year
shall equal the amount required under the statute enacted for the purpose referred
to above.

The above appropriation for tuition support includes an amount for the department
of education to make a special distribution to each school corporation and charter
school (other than a virtual charter school).

The department shall determine the amount of the distribution for each year as follows:
STEP ONE: Determine the total amount distributed in the year to all individuals
for a scholarship under the choice scholarship program described in IC 20-51-4.
STEP TWO: Determine the total amount of state tuition support that all school
corporations and charter schools (other than virtual charter schools) would have
received in the year if those individuals who received a scholarship and who were
enrolled in a public school during the preceding two (2) semesters before first
receiving the scholarship had instead remained enrolled in public schools and had
not enrolled in private schools.
STEP THREE: Determine the result of:
(A) the STEP TWO result; minus
(B) the STEP ONE amount.
STEP FOUR: Determine each school corporation's percentage and each charter school's
(other than a virtual charter school) percentage of the total state tuition support
that will be distributed to school corporations and charter schools (other than
virtual charter schools).
STEP FIVE: Multiply the result determined in STEP THREE by the school corporation's
percentage or the charter school's (other than a virtual charter school) percentage
determined under STEP FOUR.

If the above appropriations are insufficient to make the full distribution under
this provision, the amount each school corporation and charter school (other than
a virtual charter school) receives shall be proportionately reduced. The special
distributions may be made only after review by the state budget committee and approval
by the budget agency.

It is the intent of the 2013 general assembly that the above appropriations for summer
school shall be the total allowable state expenditure for such program. Therefore, if
the expected disbursements are anticipated to exceed the total appropriation for that
state fiscal year, then the department of education shall reduce the distributions
proportionately.

The above appropriation for the early intervention program may be used for grants to
local school corporations for grant proposals for early intervention programs.

The foregoing appropriations may be used by the department for the reading diagnostic
assessment and subsequent remedial programs or activities. The reading diagnostic
assessment program, as approved by the board, is to be made available on a voluntary
basis to all Indiana public and nonpublic school first and second grade students upon
the approval of the governing body of school corporations. The board shall determine
how the funds will be distributed for the assessment and related remediation. The
department or its representative shall provide progress reports on the assessment
as requested by the board and the education roundtable.

NATIONAL SCHOOL LUNCH PROGRAM
Total Operating Expense
5,125,000
5,125,000
MARION COUNTY DESEGREGATION COURT ORDER
Total Operating Expense
10,000,000
9,000,000

The foregoing appropriations for court ordered desegregation costs are made under
order No. IP 68-C-225-S of the United States District Court for the Southern District
of Indiana. If the sums herein appropriated are insufficient to enable the state to meet
its obligations, then there are hereby appropriated from the state general fund such
further sums as may be necessary for such purpose.

TEXTBOOK REIMBURSEMENT
Total Operating Expense
39,000,000
39,000,000

Before a school corporation or an accredited nonpublic school may receive a distribution
under the textbook reimbursement program, the school corporation or accredited nonpublic
school shall provide to the department the requirements established in IC 20-33-5-2.
The department shall provide to the family and social services administration (FSSA)
all data required for FSSA to meet the data collection reporting requirement in 45
CFR 265. The family and social services administration, division of family resources,
shall apply all qualifying expenditures for the textbook reimbursement program toward
Indiana's maintenance of effort under the federal Temporary Assistance for Needy
Families (TANF) program (45 CFR 260 et seq.).

TESTING AND REMEDIATION
Total Operating Expense
45,729,643
45,222,643

The above appropriations for testing and remediation include funds for graduation
exam remediation.

Prior to notification of local school corporations of the formula and components
of the formula for distributing funds for remediation and graduation exam remediation,
review and approval of the formula and components shall be made by the budget agency.
The above appropriation for testing and remediation shall be used by school
corporations to provide remediation programs for students who attend public and
nonpublic schools. For purposes of tuition support, these students are not to be
counted in the average daily membership.

The above appropriations for the Advanced Placement Program are to provide funding
for students of accredited public and nonpublic schools to take the College Board's
Advanced Placement math and science exams and to supplement any federal funds awarded
for non-math-and-science Advanced Placement exams taken by students qualified for
the Free or Reduced Lunch program. Any remaining funds available after exam fees
have been paid shall be prioritized for use by teachers of math and science Advanced
Placement courses to attend professional development training for those courses.

PSAT PROGRAM
Other Operating Expense
700,000
707,000

The above appropriations for the PSAT program are to provide funding for students
of accredited public and nonpublic schools in grade ten (10) to take the PSAT exam.

The above appropriations for the Non-English Speaking Program are for pupils
who have a primary language other than English and limited English proficiency,
as determined by using a standard proficiency examination that has been approved
by the department of education.

The grant amount is two hundred dollars ($200) per pupil. It is the intent of the
2013 general assembly that the above appropriations for the Non-English Speaking
Program shall be the total allowable state expenditure for the program. If the expected
distributions are anticipated to exceed the total appropriations for the state fiscal
year, the department of education shall reduce each school corporation's distribution
proportionately.

The above appropriation shall be used to make grants to focus and priority school
corporations and charter schools to be used to make cash awards to effective and
highly effective teachers. The department shall develop policies and procedures
to administer the program. The program shall include guidelines that permit all
school corporations and charter schools to apply for a grant. The guidelines must
specify that in order to receive a grant a school must have a system of performance
evaluations that meets the requirements of IC 20-28-11.5. The above funds are available
for allotment by the budget agency after approval by the state board of education
and review by the state budget committee.

The above appropriation includes funding to provide $7,500 for each child attending
a charter school operated by an accredited hospital specializing in the treatment of
alcohol or drug abuse. This funding is in addition to tuition support for the charter
school.

The department shall use the funds to make grants to school corporations to promote
student learning through the use of technology. Notwithstanding distribution guidelines
in IC 20-20-13, the department shall develop guidelines for distribution of the grants.
Up to $200,000 may be used each year to support the operation of the office of the
special assistant to the superintendent of public instruction for technology.

PROFESSIONAL STANDARDS DIVISION
From the General Fund
2,247,197
2,247,197
From the Professional Standards Fund (IC 20-28-2-10)
605,000
605,000
Augmentation allowed.

The amounts specified from the General Fund and the Professional Standards Fund
are for the following purposes:

Personal Services
1,851,981
1,851,981
Other Operating Expense
1,000,216
1,000,216
The above appropriations for the Professional Standards Division do not include
funds to pay stipends for mentor teachers.

FOR THE INDIANA PUBLIC RETIREMENT SYSTEM
TEACHERS' POSTRETIREMENT PENSION INCREASES
Other Operating Expense
69,265,000
71,343,000

The appropriations for postretirement pension increases are made for those benefits
and adjustments provided in IC 5-10.4 and IC 5-10.2-5.

If the amount actually required under the pre-1996 account of the teachers' retirement
fund for actual benefits for the Post Retirement Pension Increases that are funded
on a "pay as you go" basis plus the base benefits under the pre-1996 account of the
teachers' retirement fund is:
(1) greater than the above appropriations for a year, after notice to the governor
and the budget agency of the deficiency, the above appropriation for the year shall
be augmented from the state general fund. Any augmentation shall be included in
the required pension stabilization calculation under IC 5-10.4; or
(2) less than the above appropriations for a year, the excess shall be retained in the
state general fund. The portion of the benefit funded by the annuity account and
the actuarially funded Post Retirement Pension Increases shall not be part of this
calculation.

The foregoing appropriations for statewide library services will be used to provide
services to libraries across the state. These services may include, but will not be limited
to, programs, including Wheels, I*Ask, and professional development. The state library
shall identify statewide library services that are to be provided by a vendor. Those
services identified by the library shall be procured through a competitive process
using one (1) or more requests for proposals covering the service.
LIBRARY SERVICES FOR THE BLIND - ELECTRONIC NEWSLINES
Other Operating Expense
100,000
100,000
ACADEMY OF SCIENCE
Total Operating Expense
7,264
7,264

The foregoing appropriation to the arts commission includes $650,000 each year to
provide grants under IC 4-23-2.5 to:
(1) the arts organizations that have most recently qualified for general operating
support as major arts organizations as determined by the arts commission;
and
(2) the significant regional organizations that have most recently qualified for
general operating support as mid-major arts organizations, as determined by the
arts commission and its regional re-granting partners.

The following allocations of federal funds are available for career and technical
education under the Carl D. Perkins Career and Technical Education Act of 2006
(20 U.S.C. 2301 et seq. for Career and Technical Education). These funds shall be
received by the state board of education, and may be allocated by the budget agency
after consultation with the board of education and any other state agencies, commissions,
or organizations required by state law. Funds shall be allocated to these agencies
in accordance with the allocations specified below:

In accordance with IC 20-20-38, the budget agency, with the advice of the board
of education and the budget committee, may proportionately augment or reduce
an allocation of federal funds made under SECTION 11 of this act.

SECTION 13. [EFFECTIVE JULY 1, 2013]

Utility bills for the month of June, travel claims covering the period June 16 to
June 30, payroll for the period of the last half of June, any interdepartmental
bills for supplies or services for the month of June, and any other miscellaneous
expenses incurred during the period June 16 to June 30 shall be charged to the
appropriation for the succeeding year. No interdepartmental bill shall be recorded
as a refund of expenditure to any current year allotment account for supplies or
services rendered or delivered at any time during the preceding June period.

SECTION 14. [EFFECTIVE JULY 1, 2013]

The budget agency, under IC 4-10-11, IC 4-12-1-13, and IC 4-13-1, in cooperation
with the Indiana department of administration, may fix the amount of reimbursement
for traveling expenses (other than transportation) for travel within the limits of Indiana.
This amount may not exceed actual lodging and miscellaneous expenses incurred. A
person in travel status, as defined by the state travel policies and procedures established
by the Indiana department of administration and the budget agency, is entitled to a meal
allowance not to exceed during any twenty-four (24) hour period the standard meal
allowances established by the federal Internal Revenue Service.

All appropriations provided by this act or any other statute, for traveling and
hotel expenses for any department, officer, agent, employee, person, trustee, or
commissioner, are to be used only for travel within the state of Indiana, unless
those expenses are incurred in traveling outside the state of Indiana on trips that
previously have received approval as required by the state travel policies and
procedures established by the Indiana department of administration and the budget
agency. With the required approval, a reimbursement for out-of-state travel expenses
may be granted in an amount not to exceed actual lodging and miscellaneous expenses
incurred. A person in travel status is entitled to a meal allowance not to exceed during
any twenty-four (24) hour period the standard meal allowances established by the
federal Internal Revenue Service for properly approved travel within the continental
United States and a minimum of $50 during any twenty-four (24) hour period for
properly approved travel outside the continental United States. However, while
traveling in Japan, the minimum meal allowance shall not be less than $90 for any
twenty-four (24) hour period. While traveling in Korea and Taiwan, the minimum
meal allowance shall not be less than $85 for any twenty-four (24) hour period.
While traveling in Singapore, China, Great Britain, Germany, the Netherlands, and
France, the minimum meal allowance shall not be less than $65 for any twenty-four
(24) hour period.

In the case of the state supported institutions of postsecondary education, approval
for out-of-state travel may be given by the chief executive officer of the institution,
or the chief executive officer's authorized designee, for the chief executive officer's
respective personnel.

Before reimbursing overnight travel expenses, the auditor of state shall require
documentation as prescribed in the state travel policies and procedures established
by the Indiana department of administration and the budget agency. No appropriation
from any fund may be construed as authorizing the payment of any sum in excess of
the standard mileage rates for personally owned transportation equipment established
by the federal Internal Revenue Service when used in the discharge of state business.
The Indiana department of administration and the budget agency may adopt policies
and procedures relative to the reimbursement of travel and moving expenses of new
state employees and the reimbursement of travel expenses of prospective employees
who are invited to interview with the state.

SECTION 15. [EFFECTIVE JULY 1, 2013]

Notwithstanding IC 4-10-11-2.1, the salary per diem of members of boards, commissions,
and councils who are entitled to a salary per diem is $50 per day. However, members of
boards, commissions, or councils who receive an annual or a monthly salary paid by the
state are not entitled to the salary per diem provided in IC 4-10-11-2.1.

SECTION 16. [EFFECTIVE JULY 1, 2013]

No payment for personal services shall be made by the auditor of state unless the
payment has been approved by the budget agency or the designee of the budget agency.

SECTION 17. [EFFECTIVE JULY 1, 2013]

No warrant for operating expenses, capital outlay, or fixed charges shall be issued to
any department or an institution unless the receipts of the department or institution
have been deposited into the state treasury for the month. However, if a department or
an institution has more than $10,000 in daily receipts, the receipts shall be deposited
into the state treasury daily.

SECTION 18. [EFFECTIVE JULY 1, 2013]
In case of loss by fire or any other cause involving any state institution or department,
the proceeds derived from the settlement of any claim for the loss shall be deposited in
the state treasury, and the amount deposited is hereby reappropriated to the institution
or department for the purpose of replacing the loss. If it is determined that the loss shall
not be replaced, any funds received from the settlement of a claim shall be deposited
into the state general fund.

SECTION 19. [EFFECTIVE JULY 1, 2013]

If an agency has computer equipment in excess of the needs of that agency, then the
excess computer equipment may be sold under the provisions of surplus property sales,
and the proceeds of the sale or sales shall be deposited in the state treasury. The amount
so deposited is hereby reappropriated to that agency for other operating expenses of the
then current year, if approved by the director of the budget agency.

SECTION 20. [EFFECTIVE JULY 1, 2013]

If any state penal or benevolent institution other than the Indiana state prison,
Pendleton correctional facility, or Putnamville correctional facility shall, in the
operation of its farms, produce products or commodities in excess of the needs of
the institution, the surplus may be sold through the division of industries and farms,
the director of the supply division of the Indiana department of administration, or both.
The proceeds of any such sale or sales shall be deposited in the state treasury. The
amount deposited is hereby reappropriated to the institution for expenses of the
then current year if approved by the director of the budget agency. The exchange
between state penal and benevolent institutions of livestock for breeding purposes
only is hereby authorized at valuations agreed upon between the superintendents or
wardens of the institutions. Capital outlay expenditures may be made from the
institutional industries and farms revolving fund if approved by the budget agency
and the governor.

SECTION 21. [EFFECTIVE JULY 1, 2013]

This act does not authorize any rehabilitation and repairs to any state buildings,
nor does it allow that any obligations be incurred for lands and structures, without
the prior approval of the budget director or the director's designee. This SECTION
does not apply to contracts for the state universities supported in whole or in part
by state funds.

SECTION 22. [EFFECTIVE JULY 1, 2013]

If an agency has an annual appropriation fixed by law, and if the agency also receives
an appropriation in this act for the same function or program, the appropriation in
this act supersedes any other appropriations and is the total appropriation for the
agency for that program or function.

SECTION 23. [EFFECTIVE JULY 1, 2013]

The balance of any appropriation or funds heretofore placed or remaining to the
credit of any division of the state of Indiana, and any appropriation or funds provided
in this act placed to the credit of any division of the state of Indiana, the powers,
duties, and functions whereof are assigned and transferred to any department for
salaries, maintenance, operation, construction, or other expenses in the exercise
of such powers, duties, and functions, shall be transferred to the credit of the
department to which such assignment and transfer is made, and the same shall be
available for the objects and purposes for which appropriated originally.

SECTION 24. [EFFECTIVE JULY 1, 2013]

The director of the division of procurement of the Indiana department of administration,
or any other person or agency authorized to make purchases of equipment, shall not
honor any requisition for the purchase of an automobile that is to be paid for from any
appropriation made by this act or any other act, unless the following facts are shown
to the satisfaction of the commissioner of the Indiana department of administration or
the commissioner's designee:
(1) In the case of an elected state officer, it shall be shown that the duties of the
office require driving about the state of Indiana in the performance of official duty.
(2) In the case of department or commission heads, it shall be shown that the statutory
duties imposed in the discharge of the office require traveling a greater distance
than one thousand (1,000) miles each month or that they are subject to official duty
call at all times.
(3) In the case of employees, it shall be shown that the major portion of the duties
assigned to the employee require travel on state business in excess of one thousand
(1,000) miles each month, or that the vehicle is identified by the agency as an integral
part of the job assignment.

In computing the number of miles required to be driven by a department head or an
employee, the distance between the individual's home and office or designated official
station is not to be considered as a part of the total. Department heads shall annually
submit justification for the continued assignment of each vehicle in their department,
which shall be reviewed by the commissioner of the Indiana department of administration,
or the commissioner's designee. There shall be an insignia permanently affixed on
each side of all state owned cars, designating the cars as being state owned. However,
this requirement does not apply to state owned cars driven by elected state officials
or to cases where the commissioner of the Indiana department of administration or
the commissioner's designee determines that affixing insignia on state owned cars
would hinder or handicap the persons driving the cars in the performance of their
official duties.
SECTION 25. [EFFECTIVE JULY 1, 2013]

When budget agency approval or review is required under this act, the budget agency
may refer to the budget committee any budgetary or fiscal matter for an advisory
recommendation. The budget committee may hold hearings and take any actions
authorized by IC 4-12-1-11, and may make an advisory recommendation to the budget
agency.

SECTION 26. [EFFECTIVE JULY 1, 2013]

The governor of the state of Indiana is solely authorized to accept on behalf of the
state any and all federal funds available to the state of Indiana. Federal funds
received under this SECTION are appropriated for purposes specified by the federal
government, subject to allotment by the budget agency. The provisions of this
SECTION and all other SECTIONS concerning the acceptance, disbursement,
review, and approval of any grant, loan, or gift made by the federal government
or any other source to the state or its agencies and political subdivisions shall
apply, notwithstanding any other law.

SECTION 27. [EFFECTIVE JULY 1, 2013]

Federal funds received as revenue by a state agency or department are not available
to the agency or department for expenditure until allotment has been made by the
budget agency under IC 4-12-1-12(d).

SECTION 28. [EFFECTIVE JULY 1, 2013]

A contract or an agreement for personal services or other services may not be
entered into by any agency or department of state government without the approval
of the budget agency or the designee of the budget director.

SECTION 29. [EFFECTIVE JULY 1, 2013]

Except in those cases where a specific appropriation has been made to cover the
payments for any of the following, the auditor of state shall transfer, from the
personal services appropriations for each of the various agencies and departments,
necessary payments for Social Security, public employees' retirement, health
insurance, life insurance, and any other similar payments directed by the budget
agency.

SECTION 30. [EFFECTIVE JULY 1, 2013]

Subject to SECTION 25 of this act as it relates to the budget committee, the budget
agency with the approval of the governor may withhold allotments of any or all
appropriations contained in this act for the 2013-2015 biennium, if it is considered
necessary to do so in order to prevent a deficit financial situation.

SECTION 31. [EFFECTIVE UPON PASSAGE]

There is hereby appropriated from the state general fund for the Indiana charter
school board three hundred thousand dollars ($300,000) for the state fiscal year
beginning July 1, 2012, and ending June 30, 2013, to cover operating expenses of the
board.

SECTION 32. [EFFECTIVE UPON PASSAGE]

There is hereby appropriated from the state general fund for the office of management
and budget $91,200,000 for the state fiscal year beginning July 1, 2012, and ending
June 30, 2013, to repay the common school fund for outstanding charter school loans.
Charter schools must apply to the office to receive loan repayment in the manner
prescribed by the office. However, in the case of an outstanding charter school loan
owed by a charter school that is no longer operating, the office shall repay the outstanding
balance to the common school fund on behalf of the charter school. The office shall develop
policies and procedures to implement the loan repayment program.

SECTION 33. [EFFECTIVE JULY 1, 2013]

CONSTRUCTION

For the 2013-2015 biennium, the following amounts, from the funds listed as follows,
are hereby appropriated to provide for the construction, reconstruction, rehabilitation,
repair, purchase, rental, and sale of state properties, capital lease rentals, and the
purchase and sale of land, including equipment for such properties and other projects
as specified.

The allocations provided under this SECTION are made from the state general fund,
unless specifically authorized from other designated funds by this act. The budget
agency, with the approval of the governor, in approving the allocation of funds pursuant
to this SECTION, shall consider, as funds are available, allocations for the following
specific uses, purposes, and projects:

The above appropriations for highway buildings and grounds may be used for land
acquisition, site development, construction and equipping of new highway facilities
and for maintenance, repair, and rehabilitation of existing state highway facilities
after review by the budget committee.

The foregoing allocations for the Indiana department of transportation are for airport
development and shall be used for the purpose of assisting local airport authorities
and local units of government in matching available federal funds under the airport
improvement program and for matching federal grants for airport planning and for
the other airport studies. Matching grants of aid shall be made in accordance with
the approved annual capital improvements program of the Indiana department of
transportation and with the approval of the governor and the budget agency. Of the
above appropriation, $300,000 is appropriated to the South Central Regional Airport
Authority.

The budget agency may employ one (1) or more architects or engineers to inspect
construction, rehabilitation, and repair projects covered by the appropriations in
this act or previous acts.

SECTION 35. [EFFECTIVE UPON PASSAGE]
If any part of a construction or rehabilitation and repair appropriation made by this
act or any previous acts has not been allotted or encumbered before the expiration
of two (2) biennia, the budget agency may determine that the balance of the appropriation
is not available for allotment. The appropriation may be terminated, and the balance
may revert to the fund from which the original appropriation was made.

SECTION 36. [EFFECTIVE JULY 1, 2013]

The budget agency may retain balances in the mental health fund at the end of any
fiscal year to ensure there are sufficient funds to meet the service needs of the
developmentally disabled and the mentally ill in any year.

SECTION 37. [EFFECTIVE JULY 1, 2013]

If the budget director determines at any time during the biennium that the executive
branch of state government cannot meet its statutory obligations due to insufficient
funds in the general fund, then notwithstanding IC 4-10-18, the budget agency, with
the approval of the governor and after review by the budget committee, may transfer
from the counter-cyclical revenue and economic stabilization fund to the general
fund any additional amount necessary to maintain a positive balance in the general

SOURCE: IC 2-5-23-4; (13)PD4449.3. -->
SECTION 40. IC 2-5-23-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]: Sec. 4. The commission may study any topic:
(1) directed by the chairman of the commission;
(2) assigned by the legislative council; or
(3) concerning issues that include:
(A) the delivery, payment, and organization of health care services;
(B) rules adopted under IC 4-22-2 that pertain to health care delivery, payment, and services that

are under the authority of any board or agency of state government; and
(C) the implementation of IC 12-10-11.5; and
(D) the state Medicaid program and the children's health insurance program established
under IC 12-17.6.

SOURCE: IC 2-5-23-17; (13)PD4449.10. -->
SECTION 47. IC 2-5-23-17 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]: Sec. 17. Each member of the commission eachmemberofthehealthfinanceadvisorycommittee,andeachmemberofthehealthpolicyadvisorycommittee is entitled to receive the same per
diem, mileage, and travel allowances paid to individuals who serve as legislative and lay members,
respectively, of interim study committees established by the legislative council.

SOURCE: IC 2-8; (13)PD4475.1. -->
SECTION 49. IC 2-8 IS REPEALED [EFFECTIVE JULY 1, 2013]. (Delegates to a Convention Called
under Article V of the Constitution of the United States).

SOURCE: IC 2-8.2-3-5; (13)PD4475.2. -->
SECTION 50. IC 2-8.2-3-5, AS ADDED BY SEA 225-2013, SECTION 1, IS AMENDED TO READ
AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. (a) The general assembly may recall any delegate
or alternate delegate and replace that delegate or alternate delegate with an individual appointed under
this article at any time. (b) The general assembly may fill a vacancy in the office of delegate or alternate delegate with
an individual appointed under this article at any time. If the general assembly is not in session
during a time in which a vacancy has occurred with respect to both a delegate and the paired
alternate delegate of a delegate, the governor shall call the general assembly into special session
under Article 4, Section 9 of the Constitution of the State of Indiana for the purpose of appointing
a delegate and an alternate delegate to fill the vacancies.

SOURCE: IC 2-8.2-4; (13)PD4475.3. -->
SECTION 51. IC 2-8.2-4 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ
AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Chapter 4. Duties of Delegates and Alternate Delegates
Sec. 1. (a) At the time delegates and alternate delegates are appointed, the general assembly shall
adopt a joint resolution to provide instructions to the delegates and alternate delegates regarding
the following:
(1) The rules of procedure.
(2) Any other matter relating to the Article V convention that the general assembly considers
necessary.
(b) The general assembly may amend the instructions at any time by joint resolution.
Sec. 2. An alternate delegate:
(1) shall act in the place of the alternate delegate's paired delegate when the alternate
delegate's paired delegate is absent from the Article V convention; and
(2) replaces the alternate delegate's paired delegate if the alternate delegate's paired delegate
vacates the office.
Sec. 3. A vote cast by a delegate or an alternate delegate at an Article V convention that is
outside the scope of:
(1) the instructions established by a joint resolution adopted under section 1 of this chapter;
or
(2) the limits placed by the general assembly in a joint resolution that calls for an Article V
convention for the purpose of proposing amendments to the Constitution of the United States
on the subjects and amendments that may be considered by the Article V convention;
is void.
Sec. 4. (a) A delegate or alternate delegate who votes or attempts to vote outside the scope of:
(1) the instructions established by a joint resolution adopted under section 1 of this chapter;
or
(2) the limits placed by the general assembly in a joint resolution that calls for an Article V
convention for the purpose of proposing amendments to the Constitution of the United States
on the subjects and amendments that may be considered by the Article V convention;
forfeits the delegate's or alternate delegate's appointment by virtue of that vote or attempt to vote.
(b) If a delegate forfeits appointment under subsection (a), the paired alternate delegate of the
delegate becomes the delegate at the time the forfeiture of the appointment occurs.
Sec. 5. The application of the general assembly to call an Article V convention for proposing
amendments to the Constitution of the United States ceases to be a continuing application and shall
be treated as having no effect if all of the delegates and alternate delegates vote or attempt to vote
outside the scope of:
(1) the instructions established by a joint resolution adopted under section 1 of this chapter;
or
(2) the limits placed by the general assembly in a joint resolution that calls for an Article V
convention for the purpose of proposing amendments to the Constitution of the United States
on the subjects and amendments that may be considered by the Article V convention.
Sec. 6. A delegate or alternate delegate who knowingly or intentionally votes or attempts to vote
outside the scope of:
(1) the instructions established by a joint resolution adopted under section 1 of this chapter;
or
(2) the limits placed by the general assembly in a joint resolution that calls for an Article V
convention for the purpose of proposing amendments to the Constitution of the United States
on the subjects and amendments that may be considered by the Article V convention;
commits a Class D felony.

SOURCE: IC 2-8.2-5; (13)PD4475.4. -->
SECTION 52. IC 2-8.2-5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ
AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Chapter 5. Article V Convention Delegate Advisory Group
Sec. 1. As used in this chapter, "advisory group" refers to the Article V convention delegate
advisory group established by section 2 of this chapter.
Sec. 2. The Article V convention delegate advisory group is established.
Sec. 3. The advisory group consists of the following members:
(1) The chief justice of the supreme court.
(2) The chief judge of the court of appeals.
(3) The judge of the tax court.
Sec. 4. The chief justice of the supreme court is the chair of the advisory group.
Sec. 5. The advisory group shall meet at the call of the chair.
Sec. 6. The advisory group shall establish the policies and procedures that the advisory group
determines necessary to carry out this chapter.
Sec. 7. (a) Upon request of a delegate or alternate delegate, the advisory group shall advise the
delegate or alternate delegate whether there is reason to believe that an action or an attempt to take
an action by a delegate or alternate delegate would:
(1) violate the instructions established by a joint resolution adopted under IC 2-8.2-4-1; or
(2) exceed the limits placed by the general assembly in a joint resolution that calls for an
Article V convention for the purpose of proposing amendments to the Constitution of the
United States on the subjects and amendments that may be considered by the Article V
convention.
(b) The advisory group may render an advisory determination under this section in any
summary manner considered appropriate by the advisory group.
(c) The advisory group shall render an advisory determination under this section within
twenty-four (24) hours after receiving a request for a determination.
(d) The advisory group shall transmit a copy of an advisory determination under this section in
the most expeditious manner possible to the delegate or alternative delegate who requested the
advisory determination.
(e) If the advisory group renders an advisory determination under this section, the advisory
group may also take an action permitted under section 8 of this chapter.
Sec. 8. (a) On its own motion or upon request of the speaker of the house of representatives, the
president pro tempore of the senate, or the attorney general, the advisory group shall advise the
attorney general whether there is reason to believe that a vote or an attempt to vote by a delegate
or alternate delegate has:
(1) violated the instructions established by a joint resolution adopted under IC 2-8.2-4-1; or
(2) exceeded the limits placed by the general assembly in a joint resolution that calls for an
Article V convention for the purpose of proposing amendments to the Constitution of the
United States on the subjects and amendments that may be considered by the Article V
convention.
(b) The advisory group shall issue the advisory determination under this section by one (1) of the
following summary procedures:
(1) Without notice or an evidentiary proceeding.
(2) After a hearing conducted by the advisory group.
(c) The advisory group shall render an advisory determination under this section within
twenty-four (24) hours after receiving a request for an advisory determination.
(d) The advisory group shall transmit a copy of an advisory determination under this section in
the most expeditious manner possible to the attorney general.
Sec. 9. Immediately, upon receipt of an advisory determination under section 8 of this chapter
that finds that a vote or attempt to vote by a delegate or alternate delegate is a violation described
in section 8(a)(1) of this chapter or in excess of the authority of the delegate or alternate delegate,
as described in section 8(a)(2) of this chapter, the attorney general shall inform the delegates,
alternate delegates, the speaker of the house of representatives, the president pro tempore of the
senate, and the Article V convention that:
(1) the vote or attempt to vote did not comply with Indiana law, is void, and has no effect; and
(2) the credentials of the delegate or alternate delegate who is the subject of the determination
are revoked.

SOURCE: IC 3-6-2-10; (13)IN0037.1.1. -->
SECTION 53. IC 3-6-2-10.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ

AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 10.5. (a) This section applies to all counties after
June 30, 2013.
(b) The county chairman of a major political party shall, upon the request of a person who is
serving in an elected office (as defined in IC 3-5-2-17), provide to that person the name and address
of the precinct committeeman and vice committeeman of that party for each precinct in the county.

SOURCE: IC 4-6-2-1.1; (13)PD4475.5. -->
SECTION 54. IC 4-6-2-1.1, AS AMENDED BY SEA 224-2013, SECTION 2, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1.1. The attorney general has concurrent
jurisdiction with the prosecuting attorney in the prosecution of the following:
(1) Actions in which a person is accused of committing, while a member of an unlawful assembly
as defined in IC 35-45-1-1, a homicide (IC 35-42-1).
(2) Actions in which a person is accused of assisting a criminal (IC 35-44.1-2-5), if the person
alleged to have been assisted is a person described in subdivision (1).
(3) Actions in which a sheriff is accused of any offense that involves a failure to protect the life of
a prisoner in the sheriff's custody.
(4) Actions in which a violation of IC2-8-3-6 IC 2-8.2-4-6 (concerning constitutional convention
delegates) has occurred.

SOURCE: IC 4-9.1-1-7; (13)PD4449.12. -->
SECTION 55. IC 4-9.1-1-7, AS AMENDED BY P.L.246-2005, SECTION 39, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. (a) The board may transfer money between
state funds, and the board may transfer money between appropriations for any board, department,
commission, office, or benevolent or penal institution of the state. After the transfer is made the money
of the fund or appropriation transferred is not available to the fund or the board, department, commission,
office, or benevolent or penal institution from which it was transferred.
(b) In addition to a transfer under subsection (a), the board may transfer money from an appropriation
for any board, department, commission, office, or benevolent or penal institution of the state to the
Indiana economic development corporation.
(c) An order by the board to make a transfer under this section is sufficient authority for the making
of appropriate entries showing the transfer on the books of the auditor of state and treasurer of state.
(d) The authority given the board under this section to make transfers does not apply to trust funds.
For the purposes of this section, "trust fund" means a fund which by the constitution or by statute has been
designated as a trust fund or a fund which has been determined by the board to be a trust fund. (e) Whenever the board takes action to transfer money out of a dedicated fund that is
attributable to fees credited to the fund, the budget agency shall notify the budget committee within
thirty (30) days and state the reason for the transfer.

SOURCE: IC 4-10-18-1; (13)PD4449.13. -->
SECTION 56. IC 4-10-18-1, AS AMENDED BY P.L.146-2008, SECTION 8, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. As used in this chapter:
"Adjusted personal income" for a particular calendaryear reporting period means the adjusted state
personal income for that year reporting period as determined under section 3(b) of this chapter.
"Annual growth rate" for a particular calendaryear reporting period means the percentage change
in adjusted personal income for the particular calendaryear reporting period as determined under section
3(c) of this chapter.
"Budget director" refers to the director of the budget agency established under IC 4-12-1. "Bureau" means the Bureau of Economic Analysis of the United States Department of
Commerce or its successor agency.
"Costs" means the cost of construction, equipment, land, property rights (including leasehold interests),

easements, franchises, leases, financing charges, interest costs during and for a reasonable period after
construction, architectural, engineering, legal, and other consulting or advisory services, plans,
specifications, surveys, cost estimates, and other costs or expenses necessary or incident to the
acquisition, development, construction, financing, and operating of an economic growth initiative.
"Current calendar year" means a calendar year during which a transfer to or from the fund is initially
determined under sections 4 and 5 of this chapter. "Current reporting period" means the most recent reporting period for which the following
information is published by the bureau:
(1) The implicit price deflator for the gross domestic product. (2) State personal income.
"Economic growth initiative" means:
(1) the construction, extension, or completion of sewerlines, waterlines, streets, sidewalks, bridges,
roads, highways, public ways, and any other infrastructure improvements;
(2) the leasing or purchase of land and any site improvements to land;
(3) the construction, leasing, or purchase of buildings or other structures;
(4) the rehabilitation, renovation, or enlargement of buildings or other structures;
(5) the leasing or purchase of machinery, equipment, or furnishings; or
(6) the training or retraining of employees whose jobs will be created or retained as a result of the
initiative.
"Fund" means the counter-cyclical revenue and economic stabilization fund established under this
chapter.
"General fund revenue" means all general purpose tax revenue and other unrestricted general purpose
revenue of the state, including federal revenue sharing monies, credited to the state general fund and from
which appropriations may be made.
"Implicit price deflator for the gross national domestic product" means the implicit price deflator for
the gross national domestic product, or its closest equivalent, which is available from the UnitedStatesBureauofEconomicAnalysis. bureau.
"Political subdivision" has the meaning set forth in IC 36-1-2-13.
"Qualified economic growth initiative" means an economic growth initiative that is:
(1) proposed by or on behalf of a political subdivision to promote economic growth, including the
creation or retention of jobs or the infrastructure necessary to create or retain jobs;
(2) supported by a financing plan by or on behalf of the political subdivision in an amount at least
equal to the proposed amount of the grant under section 15 of this chapter; and
(3) estimated to cost not less than twelve million five hundred thousand dollars ($12,500,000). "Reporting period" refers to a period of twelve (12) consecutive months.
"State personal income" means state personal income as that term is defined by the bureau. ofEconomicAnalysisoftheUnitedStatesDepartmentofCommerceoritssuccessoragency.
"Total state general fund revenue" for a particular state fiscal year means the amount of that revenue
for the particular state fiscal year as finally determined by the auditor of state.
"Transfer payments" means transferpayments current personal transfer receipts as that term is
defined by the bureau. ofEconomicAnalysisoftheUnitedStatesDepartmentofCommerceoritssuccessoragency.

growth rate for Indiana using the current reporting period.
(b) The budget director shall determine the adjusted personal income for aparticularcalendaryear the
current reporting period in the following manner:
STEP ONE: Calculate the average implicit price deflator for the gross national domestic product
for the statefiscalyearendinginthatcalendaryear current reporting period by totaling the
implicit price deflator for the gross national domestic product for each quarter of the statefiscalyear current reporting period and dividing that total by four (4).
STEP TWO: Calculate the remainder of the total state personal income for the calendaryear current
reporting period minus any transfer payments made in Indiana for the calendaryear. current
reporting period.
STEP THREE: Calculate the quotient of the result of STEP TWO divided by the result of STEP
ONE.
STEP FOUR: Calculate the product of one hundred (100) multiplied by the result of STEP THREE.
This product is the adjusted personal income for the particularcalendaryear. current reporting
period.
(c) The annual growth rate for a particular calendaryear reporting period equals the quotient of:
(1) the remainder of:
(A) the adjusted personal income for the particular calendaryear; reporting period; minus
(B) the adjusted personal income for the calendaryear twelve (12) month period immediately
preceding the particularcalendaryear; current reporting period; divided by
(2) the adjusted personal income for the calendaryear twelve (12) month period immediately
preceding the particularcalendaryear. current reporting period.
The annual growth rate shall be expressed as a percentage and shall be rounded to the nearest one-tenth
of one percent (.1%). (0.1%).
(d) If the bureau ofEconomicAnalysisoftheUnitedStatesDepartmentofCommerce,oritssuccessoragency, changes the base year on which it calculates the implicit price deflator for the gross national domestic product, the budget director shall adjust the implicit price deflator for the gross national domestic product used in making the calculation in subsection (b) to compensate for that change in the
base year.

SOURCE: IC 4-10-18-4; (13)PD4449.15. -->
SECTION 58. IC 4-10-18-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]:
Sec. 4. (a) If the annual growth rate for the calendaryearprecedingthecurrentcalendaryear current
reporting period exceeds two percent (2%), there is appropriated to the fund from the state general fund,
for the state fiscal year beginning in the current calendar year,an amount equal to the product of:
(1) the total state general fund revenues for the state fiscal year ending in the current calendar year;multiplied by
(2) the remainder of:
(A) the annual growth rate for the calendaryearprecedingthecurrentcalendaryear; current
reporting period; minus
(B) two percent (2%).
(b) If the annual growth rate for the calendaryearimmediatelyprecedingthecurrentcalendaryear
current reporting period is less than a negative two percent (-2%), there is appropriated from the fund
to the state general fund, for the state fiscal year beginning in the current calendar year,an amount equal
to the productof: amount determined in STEP TWO of the following formula:
STEP ONE: Determine the product of:(1) (A) the total state general fund revenues for the state fiscal year ending in the current calendar
year;multiplied by(2) (B) negative one (-1). andfurthermultipliedby STEP TWO: Determine the product of:
(A) the STEP ONE result; multiplied by(3) (B) the remainder of:(A) (i) the annual growth rate for the calendaryearprecedingthecurrentcalendaryear;
current reporting period; minus(B) (ii) negative two percent (-2%).

SOURCE: IC 4-10-18-7; (13)PD4449.16. -->
SECTION 59. IC 4-10-18-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]:
Sec. 7. If: (1) the bureau ofEconomicAnalysisoftheUnitedStatesDepartmentofCommerce revises the state
personal income figure it has previously reported for the calendaryear twelve (12) month period
preceding the current calendaryear reporting period; and if (2) the revision is made after the transfer for the state fiscal year that begins in the current calendar
yearhas initially been determined under section 5 of this chapter;
then the budget director shall adjust the transfer to reflect any increase or decrease in the growth rate used
in initially determining that transfer. However, the total adjustments made under this section may not
increase or decrease the initially determined transfer by an amount which exceeds one percent (1%) of
the total general fund revenue used in determining the transfer. In addition, the last report of state personal
income that the bureau makes before April 30 of the calendar year immediately following the current
calendar year determines the final adjustment that may be made under this section with respect to that
transfer.

SOURCE: IC 4-10-22-1; (13)PD4390.17. -->
SECTION 60. IC 4-10-22-1, AS AMENDED BY P.L.160-2012, SECTION 2, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. (a) After the end of each odd-numbered state
fiscal year, the office of management and budget shall calculate in the customary manner the total amount
of state reserves as of the end of the state fiscal year. The office of management and budget shall make
the calculation not later than July 31 of each odd-numbered year. (b) The office of management and budget may not consider a balance in the state tuition reserve
fund established by IC 4-12-1-15.7 when making the calculation required by subsection (a).
SECTION 61. IC 4-10-22-3, AS AMENDED BY P.L.160-2012, SECTION 4, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. After completing the presentation to the
state budget committee described in section 2 of this chapter, the governor shall do the following:
(1) If the amount of excess reserves on June 30 of any year is less than fifty million dollars
($50,000,000), the governor shall carry over the excess reserves to each subsequent year until the
total excess reserves, including any carryover amount, equal at least fifty million dollars
($50,000,000). In the year that the total excess reserves equal at least fifty million dollars
($50,000,000), the excess reserves shall be used as provided in subdivision (2).
(2) If in any year the amount of the excess reserves is fifty million dollars ($50,000,000) or more,
the governor shall do the following:
(A) If the year is calendar year 2012, 2013, transfer fiftypercent(50%) one hundred percent
(100%) of the excess reserves asfollows:(i)Tothepensionplansforthestatepolice,conservationofficers,judges,andprosecutingattorneystoincreasethefundedamountofeachoftheseplanstoeightypercent(80%).The

fundedamountforeachplandescribedinthisitemistobedeterminedasofJune30oftheimmediatelyprecedingyear,and,iftheamountofmoneyavailablefortransferislessthantheamountneededtoincreasealltheseplans'fundedamounttoeightypercent(80%),thetransfersshallbemadeinthepriorityofeachplan'sunfundedliabilitysothatthefundedamountoftheplanwiththeleastunfundedliabilityisraisedtoeightypercent(80%)first.(ii) to the pension stabilization fund established by IC 5-10.4-2-5 for the purposes of the
pension stabilization fund. ifmoneyremainsaftersatisfyingitem(i).
If the year beginsafterDecember31,2012, is calendar year 2014 or thereafter, transfer fifty
percent (50%) of any excess reserves to the pension stabilization fund established by
IC 5-10.4-2-5 for the purposes of the pension stabilization fund.
(B) If the year is calendar year 2014 or thereafter, use fifty percent (50%) of any excess
reserves for the purposes of providing an automatic taxpayer refund under section 4 of this
chapter.

SOURCE: IC 4-12-1-9; (13)PD4449.17. -->
SECTION 62. IC 4-12-1-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]:
Sec. 9. (a) The budget agency shall assist the budget committee in the preparation of the budget report
and the budget bill, using the recommendations and estimates prepared by the budget agency and the
information obtained through investigation and presented at hearings. The budget committee shall
consider the data, information, recommendations and estimates before it and, to the extent that there is
agreement on items, matters and amounts between the budget agency and a majority of the members of
the budget committee, the committee shall organize and assemble a budget report and a budget bill or
budget bills. In the event the budget agency and a majority of the members of the budget committee shall
differ upon any item, matter, or amount to be included in such report and bills, the recommendation of
the budget agency shall be included in the budget bill or bills, and the particular item, matter or amount,
and the extent of and reasons for the differences between the budget agency and the budget committee
shall be stated fully in the budget report. BeforethesecondMondayofJanuary,intheyearimmediatelyafterpreparation,thebudgetreportandthebudgetbillorbillsshallbesubmittedtothegovernorbythebudgetcommittee. The budget committee shall submit the budget report and the budget bill or bills
to the governor before:
(1) the second Monday of January in the year immediately following the calendar year in
which the budget report and budget bill or bills are prepared, if the budget report and budget
bill or bills are prepared in a calendar year other than a calendar year in which a
gubernatorial election is held; or
(2) the third Monday of January, if the budget report and budget bill or bills are prepared in
the same calendar year in which a gubernatorial election is held.
The governor shall deliver to the house members of the budget committee such bill or bills for
introduction into the house of representatives.
(b) Whenever during the period beginning thirty (30) days prior to a regular session of the general
assembly the budget report and budget bill or bills have been completed and printed and are available for
distribution, upon the request of a member of the general assembly an informal distribution of one (1)
copy of each such document shall be made by the budget committee to such members. During business
hours, and as may be otherwise required during sessions of the general assembly, the budget agency shall
make available to the members of the general assembly so much as they shall require of its accumulated
staff information, analyses and reports concerning the fiscal affairs of the state and the current budget
report and budget bill or bills.
(c) The budget report shall include at least the following five (5) parts:
(1) A statement of budget policy, including but not limited to recommendations with reference to
the fiscal policy of the state for the coming budget period, and describing the important features of
the budget.
(2) A general budget summary setting forth the aggregate figures of the budget to show the total
proposed expenditures and the total anticipated income, and the surplus or deficit.
(3) The detailed data on actual receipts and expenditures for the previous fiscal year or two (2) fiscal
years depending upon the length of the budget period for which the budget bill or bills is proposed,
the estimated receipts and expenditures for the current year, and for the ensuing budget period, and
the anticipated balances at the end of the current fiscal year and the ensuing budget period. Such
data shall be supplemented with necessary explanatory schedules and statements, including a
statement of any differences between the recommendations of the budget agency and of the budget
committee.
(4) A description of the capital improvement program for the state and an explanation of its relation
to the budget.
(5) The budget bills.
(d) The budget report shall cover and include all special and dedicated revenue funds as well as the
general revenue fund and shall include the estimated amounts of federal aids, for whatever purpose
provided, together with estimated expenditures therefrom.
(e) The budget agency shall furnish the governor with any further information required concerning the
budget, and upon request shall attend hearings of committees of the general assembly on the budget bills.

SOURCE: IC 4-12-1-12; (13)PD4449.18. -->
SECTION 63. IC 4-12-1-12, AS AMENDED BY P.L.146-2008, SECTION 13, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 12. (a) Within forty-five (45) days following
the adjournment of the regular session of the general assembly, the budget agency shall examine the acts
of such general assembly and, with the aid of its own records and those of the budget committee, shall
prepare a complete list of all appropriations made by law for the budget period beginning on July 1
following such regular session, or so made for such other period as is provided in the appropriation. While
such list is being made by it the budget agency shall review and analyze the fiscal status and affairs of the
state as affected by such appropriations. A written report thereof shall be made and signed by the budget
director and shall be transmitted to the governor and the auditor of state. The report shall be transmitted
in an electronic format under IC 5-14-6 to the general assembly.
(b) Not later than the first day of June of each calendar year, the budget agency shall prepare a list of
all appropriations made by law for expenditure or encumbrance during the fiscal year beginning on the
first day of July of that calendar year.
(c) Within sixty (60) days following the adjournment of any special session of the general assembly,
or within such shorter period as the circumstances may require, the budget agency shall prepare for and
transmit to the governor and members of the general assembly and the auditor of state, like information
and a list of sums appropriated, all as is done upon the adjournment of a regular session, pursuant to
subsections (a) and (b) ofthissection to the extent the same are applicable. The budget agency shall
transmit any information under this subsection to the general assembly in an electronic format under
IC 5-14-6.
(d) The budget agency shall administer the allotment system provided in IC 4-13-2-18.
(e) The budget agency may transfer, assign, and reassign any appropriation or appropriations, or parts
of them, excepting those appropriations made to the Indiana state teacher's retirement fund established

by IC 5-10.4-2, made for one (1) specific use or purpose to another use or purpose of the agency of state
to which the appropriation is made, but only when the uses and purposes to which the funds transferred,
assigned and reassigned are uses and purposes the agency of state is by law required or authorized to
perform. No transfer may be made as in this subsection authorized unless upon the request of and with
the consent of the agency of state whose appropriations are involved. Except to the extent otherwise
specifically provided, every appropriation made and hereafter made and provided for any specific use or
purpose of an agency of the state is and shall be construed to be an appropriation to the agency, for all
other necessary and lawful uses and purposes of the agency, subject to the aforesaid request and consent
of the agency and concurrence of the budget agency. Whenever the budget agency makes a
determination to transfer, assign, or reassign any appropriation or appropriations or parts of them
from one (1) dedicated fund to another or to the state general fund, the budget agency shall notify
the budget committee within thirty (30) days and state the reason for the transfer.
(f) One (1) or more emergency or contingency appropriations for each fiscal year or for the budget
period may be made to the budget agency. Such appropriations shall be in amounts definitely fixed by
law, or ascertainable or determinable according to a formula, or according to appropriate provisions of
law taking into account the revenues and income of the agency of state. No transfer shall be made from
any such appropriation to the regular appropriation of an agency of the state except upon an order of the
budget agency made pursuant to the authority vested in it hereby or otherwise vested in it by law.

SOURCE: IC 4-12-1-13; (13)PD4449.19. -->
SECTION 64. IC 4-12-1-13, AS AMENDED BY P.L.100-2012, SECTION 2, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 13. (a) During the interval between sessions
of the general assembly, the budget agency shall make regular or, at the request of the governor, special
inspections of the respective institutions of the state supported by public funds. The budget agency shall
report regularly to the governor relative to the physical condition of such institutions, and any
contemplated action of the institution on a new or important matter, and on any other subject which such
agency may deem pertinent or on which the governor may require information. The budget agency shall
likewise familiarize itself with the best and approved practices in each of such institutions and supply
such information to other institutions to make their operation more efficient and economical.
(b) Except as to officers and employees of state educational institutions, the executive secretary of the
governor, the administrative assistants to the governor, the elected officials, and persons whose salaries
or compensation are fixed by the governor pursuant to law, the annual compensation of all persons
employed by agencies of the state shall be subject to the approval of the budget agency. Except as
otherwise provided by IC 4-15-2.2, the budget agency shall establish classifications and schedules for
fixing compensation, salaries and wages of all classes and types of employees of any state agency or state
agencies, and any and all other such classifications affecting compensation as the budget agency shall
deem necessary or desirable. The classifications and schedules thus established shall be filed in the office
of the budget agency. Requests by an appointing authority for salary and wage adjustments or personal
service payments coming within such classifications and schedules shall become effective when approved
by, and upon the terms of approval fixed by, the budget agency. All personnel requests pertaining to the
staffing of programs or agencies supported in whole or in part by federal funds are subject to review and
approval by the state personnel department under IC 4-15-2.2.
(c) The budget agency shall review and approve, for the sufficiency of funds, all payments for personal
services which are submitted to the auditor of state for payment.
(d) The budget agency shall review all contracts for personal services or other services and no contract
for personal services or other services may be entered into by any agency of the state before the written

approval of the budget agency is given. Each demand for payment submitted by an agency to the auditor
of state under these contracts must be accompanied by a copy of the budget agency approval. No payment
may be made by the auditor of state without such approval. However, this subsection does not apply to
a contract entered into by:
(1) a state educational institution; or
(2) an agency of the state if the contract is not required to be approved by the budget agency under
IC 4-13-2-14.1.
(e) The budget agency shall review and approve the policy and procedures governing travel prepared
by the department of administration under IC 4-13-1, before the travel policies and procedures are
distributed.
(f) Except as provided in subsection (g), the budget agency may adopt such policies and procedures
not inconsistent with law as it may deem advisable to facilitate and carry out the powers and duties of the
agency, including the execution and administration of all appropriations made by law. IC 4-22-2 does not
apply to these policies and procedures. (g) The budget agency may not enforce or apply any policy or procedure, unless specifically
authorized by this chapter or an applicable statute, against or in relation to the following officials
or agencies, unless the official or agency consents to comply with the policy or procedure, or
emergency circumstances justify extraordinary measures to protect the state's budget or fiscal
reserves:
(1) The judicial department of the state.
(2) The general assembly, the legislative services agency, or any other entity of the legislative
department of the state.
(3) The attorney general.
(4) The auditor of state.
(5) The secretary of state.
(6) The superintendent of public instruction.
(7) The treasurer of state.

SOURCE: IC 4-13-1-26; (13)PD4390.19. -->
SECTION 65. IC 4-13-1-26 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ
AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 26. (a) The following amounts are appropriated
to the department for the state fiscal year ending June 30, 2013:
(1) Seventy million dollars ($70,000,000) to defease any remaining bonds on the state museum.
(2) Fifty-eight million dollars ($58,000,000) to defease any remaining bonds on the forensics
and health sciences lab.
(b) Money appropriated under this section may not be used for any other purpose.

SOURCE: IC 4-31-11-11; (13)PD4449.22. -->
SECTION 66. IC 4-31-11-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]:
Sec. 11. Each development fund consists of:
(1) breakage and outs paid into the fund under IC 4-31-9-10;
(2) appropriations by the general assembly;
(3) gifts;
(4) stakes payments;
(5) entry fees; and
(6) money paid into the fund under IC4-33-12-6. IC 4-35-7-12.
SECTION 67. IC 4-33-12-6, AS AMENDED BY P.L.119-2012, SECTION 9, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 6. (a) The department shall place in the state

general fund the tax revenue collected under this chapter.
(b) Except as provided by subsections (c) and (d) and IC 6-3.1-20-7, the treasurer of state shall
quarterly pay the following amounts:
(1) Except as provided in subsection (k), one dollar ($1) of the admissions tax collected by the
licensed owner for each person embarking on a gambling excursion during the quarter or admitted
to a riverboat that has implemented flexible scheduling under IC 4-33-6-21 during the quarter shall
be paid to:
(A) the city in which the riverboat is docked, if the city:
(i) is located in a county having a population of more than one hundred eleven thousand
(111,000) but less than one hundred fifteen thousand (115,000); or
(ii) is contiguous to the Ohio River and is the largest city in the county; and
(B) the county in which the riverboat is docked, if the riverboat is not docked in a city described
in clause (A).
(2) Except as provided in subsection (k), one dollar ($1) of the admissions tax collected by the
licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has implemented flexible scheduling under
IC 4-33-6-21;
shall be paid to the county in which the riverboat is docked. In the case of a county described in
subdivision (1)(B), this one dollar ($1) is in addition to the one dollar ($1) received under
subdivision (1)(B).
(3) Except as provided in subsection (k), ten cents ($0.10) of the admissions tax collected by the
licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has implemented flexible scheduling under
IC 4-33-6-21;
shall be paid to the county convention and visitors bureau or promotion fund for the county in which
the riverboat is docked.
(4) Except as provided in subsection (k), fifteen cents ($0.15) of the admissions tax collected by the
licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during a quarter that has implemented flexible scheduling under
IC 4-33-6-21;
shall be paid to the state fair commission, for use in any activity that the commission is authorized
to carry out under IC 15-13-3.
(5) Except as provided in subsection (k), ten cents ($0.10) of the admissions tax collected by the
licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has implemented flexible scheduling under
IC 4-33-6-21;
shall be paid to the division of mental health and addiction. The division shall allocate at least
twenty-five percent (25%) of the funds derived from the admissions tax to the prevention and
treatment of compulsive gambling.
(6) Except as provided in subsection (k) and section 7 of this chapter, sixty-five cents ($0.65) of the

admissions tax collected by the licensed owner for each person embarking on a gambling excursion
during the quarter or admitted to a riverboat during the quarter that has implemented flexible
scheduling under IC 4-33-6-21 shall be paid to the Indiana horse racing commission to be distributed
as follows, in amounts determined by the Indiana horse racing commission, for the promotion and
operation of horse racing in Indiana:
(A) To one (1) or more breed development funds established by the Indiana horse racing
commission under IC 4-31-11-10.
(B) To a racetrack that was approved by the Indiana horse racing commission under IC 4-31. The
commission may make a grant under this clause only for purses, promotions, and routine
operations of the racetrack. No grants shall be made for long term capital investment or
construction, and no grants shall be made before the racetrack becomes operational and is
offering a racing schedule.
(c) With respect to tax revenue collected from a riverboat located in a historic hotel district, the
treasurer of state shall quarterly pay the following:
(1) With respect to admissions taxes collected for a person admitted to the riverboat before July 1,
2010, the following amounts:
(A) Twenty-two percent (22%) of the admissions tax collected during the quarter shall be paid
to the county treasurer of the county in which the riverboat is located. The county treasurer shall
distribute the money received under this clause as follows:
(i) Twenty-two and seventy-five hundredths percent (22.75%) shall be quarterly distributed to
the county treasurer of a county having a population of more than forty thousand (40,000) but
less than forty-two thousand (42,000) for appropriation by the county fiscal body after
receiving a recommendation from the county executive. The county fiscal body for the
receiving county shall provide for the distribution of the money received under this item to one
(1) or more taxing units (as defined in IC 6-1.1-1-21) in the county under a formula established
by the county fiscal body after receiving a recommendation from the county executive.
(ii) Twenty-two and seventy-five hundredths percent (22.75%) shall be quarterly distributed
to the county treasurer of a county having a population of more than ten thousand seven
hundred (10,700) but less than twelve thousand (12,000) for appropriation by the county fiscal
body. The county fiscal body for the receiving county shall provide for the distribution of the
money received under this item to one (1) or more taxing units (as defined in IC 6-1.1-1-21)
in the county under a formula established by the county fiscal body after receiving a
recommendation from the county executive.
(iii) Fifty-four and five-tenths percent (54.5%) shall be retained by the county where the
riverboat is located for appropriation by the county fiscal body after receiving a
recommendation from the county executive.
(B) Five percent (5%) of the admissions tax collected during the quarter shall be paid to a town
having a population of more than two thousand (2,000) but less than three thousand five hundred
(3,500) located in a county having a population of more than nineteen thousand five hundred
(19,500) but less than twenty thousand (20,000). At least twenty percent (20%) of the taxes
received by a town under this clause must be transferred to the school corporation in which the
town is located.
(C) Five percent (5%) of the admissions tax collected during the quarter shall be paid to a town
having a population of more than three thousand five hundred (3,500) located in a county having

a population of more than nineteen thousand five hundred (19,500) but less than twenty thousand
(20,000). At least twenty percent (20%) of the taxes received by a town under this clause must
be transferred to the school corporation in which the town is located.
(D) Twenty percent (20%) of the admissions tax collected during the quarter shall be paid in
equal amounts to each town that:
(i) is located in the county in which the riverboat is located; and
(ii) contains a historic hotel.
At least twenty percent (20%) of the taxes received by a town under this clause must be
transferred to the school corporation in which the town is located.
(E) Ten percent (10%) of the admissions tax collected during the quarter shall be paid to the
Orange County development commission established under IC 36-7-11.5. At least one-third (1/3)
of the taxes paid to the Orange County development commission under this clause must be
transferred to the Orange County convention and visitors bureau.
(F) Thirteen percent (13%) of the admissions tax collected during the quarter shall be paid to the
West Baden Springs historic hotel preservation and maintenance fund established by
IC 36-7-11.5-11(b).
(G) Twenty-five percent (25%) of the admissions tax collected during the quarter shall be paid
to the Indiana economic development corporation to be used by the corporation for the
development and implementation of a regional economic development strategy to assist the
residents of the county in which the riverboat is located and residents of contiguous counties in
improving their quality of life and to help promote successful and sustainable communities. The
regional economic development strategy must include goals concerning the following issues:
(i) Job creation and retention.
(ii) Infrastructure, including water, wastewater, and storm water infrastructure needs.
(iii) Housing.
(iv) Workforce training.
(v) Health care.
(vi) Local planning.
(vii) Land use.
(viii) Assistance to regional economic development groups.
(ix) Other regional development issues as determined by the Indiana economic development
corporation.
(2) With respect to admissions taxes collected for a person admitted to the riverboat after June 30,
2010, the following amounts:
(A) Twenty-nine and thirty-three hundredths percent (29.33%) to the county treasurer of Orange
County. The county treasurer shall distribute the money received under this clause as follows:
(i) Twenty-two and seventy-five hundredths percent (22.75%) to the county treasurer of Dubois
County for distribution in the manner described in subdivision (1)(A)(i).
(ii) Twenty-two and seventy-five hundredths percent (22.75%) to the county treasurer of
Crawford County for distribution in the manner described in subdivision (1)(A)(ii).
(iii) Fifty-four and five-tenths percent (54.5%) to be retained by the county treasurer of Orange
County for appropriation by the county fiscal body after receiving a recommendation from the
county executive.
(B) Six and sixty-seven hundredths percent (6.67%) to the fiscal officer of the town of Orleans.

At least twenty percent (20%) of the taxes received by the town under this clause must be
transferred to Orleans Community Schools.
(C) Six and sixty-seven hundredths percent (6.67%) to the fiscal officer of the town of Paoli. At
least twenty percent (20%) of the taxes received by the town under this clause must be transferred
to the Paoli Community School Corporation.
(D) Twenty-six and sixty-seven hundredths percent (26.67%) to be paid in equal amounts to the
fiscal officers of the towns of French Lick and West Baden Springs. At least twenty percent
(20%) of the taxes received by a town under this clause must be transferred to the Springs Valley
Community School Corporation.
(E) Thirty and sixty-six hundredths percent (30.66%) to the Indiana economic development
corporation to be used in the manner described in subdivision (1)(G).
(d) With respect to tax revenue collected from a riverboat that operates from a county having a
population of more than four hundred thousand (400,000) but less than seven hundred thousand
(700,000), the treasurer of state shall quarterly pay the following amounts:
(1) Except as provided in subsection (k), one dollar ($1) of the admissions tax collected by the
licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has implemented flexible scheduling under
IC 4-33-6-21;
shall be paid to the city in which the riverboat is docked.
(2) Except as provided in subsection (k), one dollar ($1) of the admissions tax collected by the
licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has implemented flexible scheduling under
IC 4-33-6-21;
shall be paid to the county in which the riverboat is docked.
(3) Except as provided in subsection (k), nine cents ($0.09) of the admissions tax collected by the
licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has implemented flexible scheduling under
IC 4-33-6-21;
shall be paid to the county convention and visitors bureau or promotion fund for the county in which
the riverboat is docked.
(4) Except as provided in subsection (k), one cent ($0.01) of the admissions tax collected by the
licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has implemented flexible scheduling under
IC 4-33-6-21;
shall be paid to the northwest Indiana law enforcement training center.
(5) Except as provided in subsection (k), fifteen cents ($0.15) of the admissions tax collected by the
licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during a quarter that has implemented flexible scheduling under
IC 4-33-6-21;

shall be paid to the state fair commission for use in any activity that the commission is authorized
to carry out under IC 15-13-3.
(6) Except as provided in subsection (k), ten cents ($0.10) of the admissions tax collected by the
licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has implemented flexible scheduling under
IC 4-33-6-21;
shall be paid to the division of mental health and addiction. The division shall allocate at least
twenty-five percent (25%) of the funds derived from the admissions tax to the prevention and
treatment of compulsive gambling.
(7) Except as provided in subsection (k) and section 7 of this chapter, sixty-five cents ($0.65) of the
admissions tax collected by the licensed owner for each person embarking on a gambling excursion
during the quarter or admitted to a riverboat during the quarter that has implemented flexible
scheduling under IC 4-33-6-21 shall be paid to the Indiana horse racing commission to be distributed
as follows, in amounts determined by the Indiana horse racing commission, for the promotion and
operation of horse racing in Indiana:
(A) To one (1) or more breed development funds established by the Indiana horse racing
commission under IC 4-31-11-10.
(B) To a racetrack that was approved by the Indiana horse racing commission under IC 4-31. The
commission may make a grant under this clause only for purses, promotions, and routine
operations of the racetrack. No grants shall be made for long term capital investment or
construction, and no grants shall be made before the racetrack becomes operational and is
offering a racing schedule.
(e) Money paid to a unit of local government under subsection (b), (c), or (d):
(1) must be paid to the fiscal officer of the unit and may be deposited in the unit's general fund or
riverboat fund established under IC 36-1-8-9, or both;
(2) may not be used to reduce the unit's maximum levy under IC 6-1.1-18.5 but may be used at the
discretion of the unit to reduce the property tax levy of the unit for a particular year;
(3) may be used for any legal or corporate purpose of the unit, including the pledge of money to
bonds, leases, or other obligations under IC 5-1-14-4; and
(4) is considered miscellaneous revenue.
(f) Money paid by the treasurer of state under subsection (b)(3) or (d)(3) shall be:
(1) deposited in:
(A) the county convention and visitor promotion fund; or
(B) the county's general fund if the county does not have a convention and visitor promotion
fund; and
(2) used only for the tourism promotion, advertising, and economic development activities of the
county and community.
(g) Money received by the division of mental health and addiction under subsections (b)(5) and (d)(6):
(1) is annually appropriated to the division of mental health and addiction;
(2) shall be distributed to the division of mental health and addiction at times during each state fiscal
year determined by the budget agency; and
(3) shall be used by the division of mental health and addiction for programs and facilities for the
prevention and treatment of addictions to drugs, alcohol, and compulsive gambling, including the

creation and maintenance of a toll free telephone line to provide the public with information about
these addictions. The division shall allocate at least twenty-five percent (25%) of the money received
to the prevention and treatment of compulsive gambling.
(h) This subsection applies to the following:
(1) Each entity receiving money under subsection (b).
(2) Each entity receiving money under subsection (d)(1) through (d)(2).
(3) Each entity receiving money under subsection (d)(5) through (d)(7).
The treasurer of state shall determine the total amount of money paid by the treasurer of state to an entity
subject to this subsection during the state fiscal year 2002. The amount determined under this subsection
is the base year revenue for each entity subject to this subsection. The treasurer of state shall certify the
base year revenue determined under this subsection to each entity subject to this subsection.
(i) This subsection applies to an entity receiving money under subsection (d)(3) or (d)(4). The treasurer
of state shall determine the total amount of money paid by the treasurer of state to the entity described in
subsection (d)(3) during state fiscal year 2002. The amount determined under this subsection multiplied
by nine-tenths (0.9) is the base year revenue for the entity described in subsection (d)(3). The amount
determined under this subsection multiplied by one-tenth (0.1) is the base year revenue for the entity
described in subsection (d)(4). The treasurer of state shall certify the base year revenue determined under
this subsection to each entity subject to this subsection.
(j) This subsection does not apply to an entity receiving money under subsection (c). For state fiscal
years beginning after June 30, 2002, the total amount of money distributed to an entity under this section
during a state fiscal year may not exceed the entity's base year revenue as determined under subsection
(h) or (i). If the treasurer of state determines that the total amount of money distributed to an entity under
this section during a state fiscal year is less than the entity's base year revenue, the treasurer of state shall
make a supplemental distribution to the entity under IC4-33-13-5(g). IC 4-33-13-5.
(k) This subsection does not apply to an entity receiving money under subsection (c). For state fiscal
years beginning after June 30, 2002, the treasurer of state shall pay that part of the riverboat admissions
taxes that:
(1) exceeds a particular entity's base year revenue; and
(2) would otherwise be due to the entity under this section;
to the state general fund instead of to the entity.
SECTION 68. IC 4-33-12.5-6, AS ADDED BY P.L.214-2005, SECTION 5, IS AMENDED TO READ
AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 6. (a) The county described in IC 4-33-12-6(d) shall
distribute twenty-five percent (25%) of the:
(1) admissions tax revenue received by the county under IC 4-33-12-6(d)(2); and
(2) supplemental distributions received under IC4-33-13-5(g); IC 4-33-13-5;
to the eligible municipalities.
(b) The amount that shall be distributed by the county to each eligible municipality under subsection
(a) is based on the eligible municipality's proportionate share of the total population of all eligible
municipalities. The most current certified census information available shall be used to determine an
eligible municipality's proportionate share under this subsection. The determination of proportionate
shares under this subsection shall be modified under the following conditions:
(1) The certification from any decennial census completed by the United States Bureau of the
Census.
(2) Submission by one (1) or more eligible municipalities of a certified special census commissioned

by an eligible municipality and performed by the United States Bureau of the Census.
(c) If proportionate shares are modified under subsection (b), distribution to eligible municipalities
shall change with the:
(1) payments beginning April 1 of the year following the certification of a special census under
subsection (b)(2); and
(2) the next quarterly payment following the certification of a decennial census under subsection
(b)(1).
SECTION 69. IC 4-33-12.5-7, AS ADDED BY P.L.214-2005, SECTION 5, IS AMENDED TO READ
AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. The county shall make payments under this chapter
directly to each eligible municipality. The county shall make payments to the eligible municipalities not
more than thirty (30) days after the county receives the quarterly distribution of admission tax revenue
under IC 4-33-12-6 or the supplemental distributions received under IC4-33-13-5(g) IC 4-33-13-5 from
the state.
SECTION 70. IC 4-33-13-5, AS AMENDED BY P.L.119-2012, SECTION 10, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. (a) This subsection does not apply to tax
revenue remitted by an operating agent operating a riverboat in a historic hotel district. After funds are
appropriated under section 4 of this chapter, each month the treasurer of state shall distribute the tax
revenue deposited in the state gaming fund under this chapter to the following:
(1) The first thirty-three million dollars ($33,000,000) of tax revenues collected under this chapter
shall be set aside for revenue sharing under subsection (e).
(2) Subject to subsection (c), twenty-five percent (25%) of the remaining tax revenue remitted by
each licensed owner shall be paid:
(A) to the city that is designated as the home dock of the riverboat from which the tax revenue
was collected, in the case of:
(i) a city described in IC 4-33-12-6(b)(1)(A); or
(ii) a city located in a county having a population of more than four hundred thousand
(400,000) but less than seven hundred thousand (700,000); or
(B) to the county that is designated as the home dock of the riverboat from which the tax revenue
was collected, in the case of a riverboat whose home dock is not in a city described in clause (A).
(3) Subject to subsection (d), the remainder of the tax revenue remitted by each licensed owner shall
be paid to the state general fund. In each state fiscal year, the treasurer of state shall make the
transfer required by this subdivision not later than the last business day of the month in which the
tax revenue is remitted to the state for deposit in the state gaming fund. However, if tax revenue is
received by the state on the last business day in a month, the treasurer of state may transfer the tax
revenue to the state general fund in the immediately following month.
(b) This subsection applies only to tax revenue remitted by an operating agent operating a riverboat
in a historic hotel district. After funds are appropriated under section 4 of this chapter, each month the
treasurer of state shall distribute the tax revenue remitted by the operating agent under this chapter as
follows:
(1) Thirty-seven and one-half percent (37.5%) shall be paid to the state general fund.
(2) Nineteen percent (19%) shall be paid to the West Baden Springs historic hotel preservation and
maintenance fund established by IC 36-7-11.5-11(b). However, at any time the balance in that fund
exceeds twenty million dollars ($20,000,000), the amount described in this subdivision shall be paid
to the state general fund.

(3) Eight percent (8%) shall be paid to the Orange County development commission established
under IC 36-7-11.5.
(4) Sixteen percent (16%) shall be paid in equal amounts to each town that is located in the county
in which the riverboat is located and contains a historic hotel. The following apply to taxes received
by a town under this subdivision:
(A) At least twenty-five percent (25%) of the taxes must be transferred to the school corporation
in which the town is located.
(B) At least twelve and five-tenths percent (12.5%) of the taxes imposed on adjusted gross
receipts received after June 30, 2010, must be transferred to the Orange County development
commission established by IC 36-7-11.5-3.5.
(5) Nine percent (9%) shall be paid to the county treasurer of the county in which the riverboat is
located. The county treasurer shall distribute the money received under this subdivision as follows:
(A) Twenty-two and twenty-five hundredths percent (22.25%) shall be quarterly distributed to
the county treasurer of a county having a population of more than forty thousand (40,000) but less
than forty-two thousand (42,000) for appropriation by the county fiscal body after receiving a
recommendation from the county executive. The county fiscal body for the receiving county shall
provide for the distribution of the money received under this clause to one (1) or more taxing
units (as defined in IC 6-1.1-1-21) in the county under a formula established by the county fiscal
body after receiving a recommendation from the county executive.
(B) Twenty-two and twenty-five hundredths percent (22.25%) shall be quarterly distributed to
the county treasurer of a county having a population of more than ten thousand seven hundred
(10,700) but less than twelve thousand (12,000) for appropriation by the county fiscal body after
receiving a recommendation from the county executive. The county fiscal body for the receiving
county shall provide for the distribution of the money received under this clause to one (1) or
more taxing units (as defined in IC 6-1.1-1-21) in the county under a formula established by the
county fiscal body after receiving a recommendation from the county executive.
(C) Fifty-five and five-tenths percent (55.5%) shall be retained by the county in which the
riverboat is located for appropriation by the county fiscal body after receiving a recommendation
from the county executive.
(6) Five percent (5%) shall be paid to a town having a population of more than two thousand (2,000)
but less than three thousand five hundred (3,500) located in a county having a population of more
than nineteen thousand five hundred (19,500) but less than twenty thousand (20,000). At least forty
percent (40%) of the taxes received by a town under this subdivision must be transferred to the
school corporation in which the town is located.
(7) Five percent (5%) shall be paid to a town having a population of more than three thousand five
hundred (3,500) located in a county having a population of more than nineteen thousand five
hundred (19,500) but less than twenty thousand (20,000). At least forty percent (40%) of the taxes
received by a town under this subdivision must be transferred to the school corporation in which the
town is located.
(8) Five-tenths percent (0.5%) of the taxes imposed on adjusted gross receipts received after June
30, 2010, shall be paid to the Indiana economic development corporation established by IC 5-28-3-1.
(c) For each city and county receiving money under subsection (a)(2), the treasurer of state shall
determine the total amount of money paid by the treasurer of state to the city or county during the state
fiscal year 2002. The amount determined is the base year revenue for the city or county. The treasurer of

state shall certify the base year revenue determined under this subsection to the city or county. The total
amount of money distributed to a city or county under this section during a state fiscal year may not
exceed the entity's base year revenue. For each state fiscal year, the treasurer of state shall pay that part
of the riverboat wagering taxes that:
(1) exceeds a particular city's or county's base year revenue; and
(2) would otherwise be due to the city or county under this section;
to the state general fund instead of to the city or county.
(d) Each state fiscal year the treasurer of state shall transfer from the tax revenue remitted to the state
general fund under subsection (a)(3) to the build Indiana fund an amount that when added to the following
may not exceed two hundred fifty million dollars ($250,000,000):
(1) Surplus lottery revenues under IC 4-30-17-3.
(2) Surplus revenue from the charity gaming enforcement fund under IC 4-32.2-7-7.
(3) Tax revenue from pari-mutuel wagering under IC 4-31-9-3.
The treasurer of state shall make transfers on a monthly basis as needed to meet the obligations of the
build Indiana fund. If in any state fiscal year insufficient money is transferred to the state general fund
under subsection (a)(3) to comply with this subsection, the treasurer of state shall reduce the amount
transferred to the build Indiana fund to the amount available in the state general fund from the transfers
under subsection (a)(3) for the state fiscal year.
(e) Before August 15 of each year, the treasurer of state shall distribute the wagering taxes set aside
for revenue sharing under subsection (a)(1) to the county treasurer of each county that does not have a
riverboat according to the ratio that the county's population bears to the total population of the counties
that do not have a riverboat. Except as provided in subsection (h), the county auditor shall distribute the
money received by the county under this subsection as follows:
(1) To each city located in the county according to the ratio the city's population bears to the total
population of the county.
(2) To each town located in the county according to the ratio the town's population bears to the total
population of the county.
(3) After the distributions required in subdivisions (1) and (2) are made, the remainder shall be
retained by the county.
(f) Money received by a city, town, or county under subsection (e) or (h) may be used for any of the
following purposes:
(1) To reduce the property tax levy of the city, town, or county for a particular year (a property tax
reduction under this subdivision does not reduce the maximum levy of the city, town, or county
under IC 6-1.1-18.5).
(2) For deposit in a special fund or allocation fund created under IC 8-22-3.5, IC 36-7-14,
IC 36-7-14.5, IC 36-7-15.1, and IC 36-7-30 to provide funding for debt repayment.
(3) To fund sewer and water projects, including storm water management projects.
(4) For police and fire pensions.
(5) To carry out any governmental purpose for which the money is appropriated by the fiscal body
of the city, town, or county. Money used under this subdivision does not reduce the property tax levy
of the city, town, or county for a particular year or reduce the maximum levy of the city, town, or
county under IC 6-1.1-18.5.
(g) This subsection does not apply to an entity receiving money under IC 4-33-12-6(c). Before
September 15 of each year, the treasurer of state shall determine the total amount of money distributed

to an entity under IC 4-33-12-6 during the preceding state fiscal year. If the treasurer of state determines
that the total amount of money distributed to an entity under IC 4-33-12-6 during the preceding state fiscal
year was less than the entity's base year revenue (as determined under IC 4-33-12-6), the treasurer of state
shall make a supplemental distribution to the entity from taxes collected under this chapter and deposited
into the state general fund. Except as provided in subsection (i) or (j), the amount of an entity's
supplemental distribution is equal to:
(1) the entity's base year revenue (as determined under IC 4-33-12-6); minus
(2) the sum of:
(A) the total amount of money distributed to the entity during the preceding state fiscal year
under IC 4-33-12-6. plus
(B) any amounts deducted under IC 6-3.1-20-7.
(h) This subsection applies only to a county containing a consolidated city. The county auditor shall
distribute the money received by the county under subsection (e) as follows:
(1) To each city, other than a consolidated city, located in the county according to the ratio that the
city's population bears to the total population of the county.
(2) To each town located in the county according to the ratio that the town's population bears to the
total population of the county.
(3) After the distributions required in subdivisions (1) and (2) are made, the remainder shall be paid
in equal amounts to the consolidated city and the county.
(i) This subsection applies only to the Indiana horse racing commission. For each state fiscal year the
amount of the Indiana horse racing commission's supplemental distribution under subsection (g) must be
reduced by the amount required to comply with IC 4-33-12-7(a). (j) This subsection applies to a supplemental distribution made after June 30, 2013. The
maximum amount of money that may be distributed under subsection (g) in a state fiscal year is
forty-eight million dollars ($48,000,000). If the total amount determined under subsection (g)
exceeds forty-eight million dollars ($48,000,000), the amount distributed to an entity under
subsection (g) must be reduced according to the ratio that the amount distributed to the entity
under IC 4-33-12-6 bears to the total amount distributed under IC 4-33-12-6 to all entities receiving
a supplemental distribution.
SECTION 71. IC 4-35-2-2, AS ADDED BY P.L.233-2007, SECTION 21, IS AMENDED TO READ
AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. "Adjusted gross receipts" means:
(1) the total of all cash and property (including checks received by a licensee, whether collected or
not) received by a licensee from gambling games, including amounts that are distributed by a
licensee under IC 4-35-7-12; minus
(2) the total of:
(A) all cash paid out to patrons as winnings for gambling games; and
(B) uncollectible gambling game receivables, not to exceed the lesser of:
(i) a reasonable provision for uncollectible patron checks received from gambling games; or
(ii) two percent (2%) of the total of all sums, including checks, whether collected or not, less
the amount paid out to patrons as winnings for gambling games.
For purposes of this section, a counter or personal check that is invalid or unenforceable under this article
is considered cash received by the licensee from gambling games.

is imposed as follows ononehundredpercent(100%)oftheadjustedgrossreceiptsreceivedbeforeJuly1,2012,and on ninety-nine percent (99%) of the adjusted gross receipts received after June 30, 2012, and
before July 1, 2013, and on ninety-one and five-tenths percent (91.5%) of the adjusted gross receipts
received after June 30, 2013, from wagering on gambling games authorized by this article:
(1) Twenty-five percent (25%) of the first one hundred million dollars ($100,000,000) of adjusted
gross receipts received during the period beginning July 1 of each year and ending June 30 of the
following year.
(2) Thirty percent (30%) of the adjusted gross receipts in excess of one hundred million dollars
($100,000,000) but not exceeding two hundred million dollars ($200,000,000) received during the
period beginning July 1 of each year and ending June 30 of the following year.
(3) Thirty-five percent (35%) of the adjusted gross receipts in excess of two hundred million dollars
($200,000,000) received during the period beginning July 1 of each year and ending June 30 of the
following year.
(b) A licensee shall remit the tax imposed by this section to the department before the close of the
business day following the day the wagers are made.
(c) The department may require payment under this section to be made by electronic funds transfer
(as defined in IC 4-8.1-2-7(f)).
(d) If the department requires taxes to be remitted under this chapter through electronic funds transfer,
the department may allow the licensee to file a monthly report to reconcile the amounts remitted to the
department.
(e) The payment of the tax under this section must be on a form prescribed by the department.

SOURCE: IC 5-2-1-9; (13)PD4449.24. -->
SECTION 73. IC 5-2-1-9, AS AMENDED BY HEA 1044-2013, SECTION 1, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 9. (a) The board shall adopt in accordance with
IC 4-22-2 all necessary rules to carry out the provisions of this chapter. The rules, which shall be adopted
only after necessary and proper investigation and inquiry by the board, shall include the establishment
of the following:
(1) Minimum standards of physical, educational, mental, and moral fitness which shall govern the
acceptance of any person for training by any law enforcement training school or academy meeting
or exceeding the minimum standards established pursuant to this chapter.
(2) Minimum standards for law enforcement training schools administered by towns, cities, counties,
law enforcement training centers, agencies, or departments of the state.
(3) Minimum standards for courses of study, attendance requirements, equipment, and facilities for
approved town, city, county, and state law enforcement officer, police reserve officer, and
conservation reserve officer training schools.
(4) Minimum standards for a course of study on cultural diversity awareness that must be required
for each person accepted for training at a law enforcement training school or academy.
(5) Minimum qualifications for instructors at approved law enforcement training schools.
(6) Minimum basic training requirements which law enforcement officers appointed to probationary
terms shall complete before being eligible for continued or permanent employment.
(7) Minimum basic training requirements which law enforcement officers appointed on other than
a permanent basis shall complete in order to be eligible for continued employment or permanent
appointment.
(8) Minimum basic training requirements which law enforcement officers appointed on a permanent
basis shall complete in order to be eligible for continued employment.
(9) Minimum basic training requirements for each person accepted for training at a law enforcement
training school or academy that include six (6) hours of training in interacting with:
(A) persons with autism, mental illness, addictive disorders, mental retardation, and
developmental disabilities;
(B) missing endangered adults (as defined in IC 12-7-2-131.3); and
(C) persons with Alzheimer's disease or related senile dementia;
to be provided by persons approved by the secretary of family and social services and the board.
(10) Minimum standards for a course of study on human and sexual trafficking that must be required
for each person accepted for training at a law enforcement training school or academy and for
inservice training programs for law enforcement officers. The course must cover the following
topics:
(A) Examination of the human and sexual trafficking laws (IC 35-42-3.5).
(B) Identification of human and sexual trafficking.
(C) Communicating with traumatized persons.
(D) Therapeutically appropriate investigative techniques.
(E) Collaboration with federal law enforcement officials.
(F) Rights of and protections afforded to victims.
(G) Providing documentation that satisfies the Declaration of Law Enforcement Officer for
Victim of Trafficking in Persons (Form I-914, Supplement B) requirements established under
federal law.
(H) The availability of community resources to assist human and sexual trafficking victims.
(b) A law enforcement officer appointed after July 5, 1972, and before July 1, 1993, may not enforce
the laws or ordinances of the state or any political subdivision unless the officer has, within one (1) year
from the date of appointment, successfully completed the minimum basic training requirements
established under this chapter by the board. If a person fails to successfully complete the basic training
requirements within one (1) year from the date of employment, the officer may not perform any of the
duties of a law enforcement officer involving control or direction of members of the public or exercising
the power of arrest until the officer has successfully completed the training requirements. This subsection
does not apply to any law enforcement officer appointed before July 6, 1972, or after June 30, 1993.
(c) Military leave or other authorized leave of absence from law enforcement duty during the first year
of employment after July 6, 1972, shall toll the running of the first year, which shall be calculated by the
aggregate of the time before and after the leave, for the purposes of this chapter.
(d) Except as provided in subsections (e), (l), (r), and (s), a law enforcement officer appointed to a law
enforcement department or agency after June 30, 1993, may not:
(1) make an arrest;
(2) conduct a search or a seizure of a person or property; or
(3) carry a firearm;
unless the law enforcement officer successfully completes, at a board certified law enforcement academy
or at a law enforcement training center under section 10.5 or 15.2 of this chapter, the basic training
requirements established by the board under this chapter.
(e) This subsection does not apply to:
(1) a gaming agent employed as a law enforcement officer by the Indiana gaming commission; or
(2) an:
(A) attorney; or
(B) investigator;
designated by the securities commissioner as a police officer of the state under IC23-19-6-1(i). IC 23-19-6-1(k).
Before a law enforcement officer appointed after June 30, 1993, completes the basic training
requirements, the law enforcement officer may exercise the police powers described in subsection (d) if
the officer successfully completes the pre-basic course established in subsection (f). Successful
completion of the pre-basic course authorizes a law enforcement officer to exercise the police powers
described in subsection (d) for one (1) year after the date the law enforcement officer is appointed.
(f) The board shall adopt rules under IC 4-22-2 to establish a pre-basic course for the purpose of
training:
(1) law enforcement officers;
(2) police reserve officers (as described in IC 36-8-3-20); and
(3) conservation reserve officers (as described in IC 14-9-8-27);
regarding the subjects of arrest, search and seizure, the lawful use of force, interacting with individuals
with autism, and the operation of an emergency vehicle. The pre-basic course must be offered on a
periodic basis throughout the year at regional sites statewide. The pre-basic course must consist of at least
forty (40) hours of course work. The board may prepare the classroom part of the pre-basic course using
available technology in conjunction with live instruction. The board shall provide the course material, the
instructors, and the facilities at the regional sites throughout the state that are used for the pre-basic
course. In addition, the board may certify pre-basic courses that may be conducted by other public or
private training entities, including postsecondary educational institutions.
(g) The board shall adopt rules under IC 4-22-2 to establish a mandatory inservice training program
for police officers. After June 30, 1993, a law enforcement officer who has satisfactorily completed basic
training and has been appointed to a law enforcement department or agency on either a full-time or
part-time basis is not eligible for continued employment unless the officer satisfactorily completes the
mandatory inservice training requirements established by rules adopted by the board. Inservice training
must include training in interacting with persons with mental illness, addictive disorders, mental
retardation, autism, developmental disabilities, and Alzheimer's disease or related senile dementia, to be
provided by persons approved by the secretary of family and social services and the board, and training
concerning human and sexual trafficking and high risk missing persons (as defined in IC 5-2-17-1). The
board may approve courses offered by other public or private training entities, including postsecondary
educational institutions, as necessary in order to ensure the availability of an adequate number of inservice
training programs. The board may waive an officer's inservice training requirements if the board
determines that the officer's reason for lacking the required amount of inservice training hours is due to
either of the following:
(1) An emergency situation.
(2) The unavailability of courses.
(h) The board shall also adopt rules establishing a town marshal basic training program, subject to the
following:
(1) The program must require fewer hours of instruction and class attendance and fewer courses of
study than are required for the mandated basic training program.
(2) Certain parts of the course materials may be studied by a candidate at the candidate's home in
order to fulfill requirements of the program.
(3) Law enforcement officers successfully completing the requirements of the program are eligible

for appointment only in towns employing the town marshal system (IC 36-5-7) and having not more
than one (1) marshal and two (2) deputies.
(4) The limitation imposed by subdivision (3) does not apply to an officer who has successfully
completed the mandated basic training program.
(5) The time limitations imposed by subsections (b) and (c) for completing the training are also
applicable to the town marshal basic training program.
(6) The program must require training in interacting with individuals with autism.
(i) The board shall adopt rules under IC 4-22-2 to establish an executive training program. The
executive training program must include training in the following areas:
(1) Liability.
(2) Media relations.
(3) Accounting and administration.
(4) Discipline.
(5) Department policy making.
(6) Lawful use of force.
(7) Department programs.
(8) Emergency vehicle operation.
(9) Cultural diversity.
(j) A police chief shall apply for admission to the executive training program within two (2) months
of the date the police chief initially takes office. A police chief must successfully complete the executive
training program within six (6) months of the date the police chief initially takes office. However, if space
in the executive training program is not available at a time that will allow completion of the executive
training program within six (6) months of the date the police chief initially takes office, the police chief
must successfully complete the next available executive training program that is offered after the police
chief initially takes office.
(k) A police chief who fails to comply with subsection (j) may not continue to serve as the police chief
until completion of the executive training program. For the purposes of this subsection and subsection
(j), "police chief" refers to:
(1) the police chief of any city;
(2) the police chief of any town having a metropolitan police department; and
(3) the chief of a consolidated law enforcement department established under IC 36-3-1-5.1.
A town marshal is not considered to be a police chief for these purposes, but a town marshal may enroll
in the executive training program.
(l) A fire investigator in the division of fire and building safety appointed after December 31, 1993,
is required to comply with the basic training standards established under this chapter.
(m) The board shall adopt rules under IC 4-22-2 to establish a program to certify handgun safety
courses, including courses offered in the private sector, that meet standards approved by the board for
training probation officers in handgun safety as required by IC 11-13-1-3.5(3).
(n) The board shall adopt rules under IC 4-22-2 to establish a refresher course for an officer who:
(1) is hired by an Indiana law enforcement department or agency as a law enforcement officer;
(2) has not been employed as a law enforcement officer for at least two (2) years and less than six
(6) years before the officer is hired under subdivision (1) due to the officer's resignation or
retirement; and
(3) completed at any time a basic training course certified by the board before the officer is hired

under subdivision (1).
(o) The board shall adopt rules under IC 4-22-2 to establish a refresher course for an officer who:
(1) is hired by an Indiana law enforcement department or agency as a law enforcement officer;
(2) has not been employed as a law enforcement officer for at least six (6) years and less than ten
(10) years before the officer is hired under subdivision (1) due to the officer's resignation or
retirement;
(3) is hired under subdivision (1) in an upper level policymaking position; and
(4) completed at any time a basic training course certified by the board before the officer is hired
under subdivision (1).
A refresher course established under this subsection may not exceed one hundred twenty (120) hours of
course work. All credit hours received for successfully completing the police chief executive training
program under subsection (i) shall be applied toward the refresher course credit hour requirements.
(p) Subject to subsection (q), an officer to whom subsection (n) or (o) applies must successfully
complete the refresher course described in subsection (n) or (o) not later than six (6) months after the
officer's date of hire, or the officer loses the officer's powers of:
(1) arrest;
(2) search; and
(3) seizure.
(q) A law enforcement officer who has worked as a law enforcement officer for less than twenty-five
(25) years before being hired under subsection (n)(1) or (o)(1) is not eligible to attend the refresher course
described in subsection (n) or (o) and must repeat the full basic training course to regain law enforcement
powers. However, a law enforcement officer who has worked as a law enforcement officer for at least
twenty-five (25) years before being hired under subsection (n)(1) or (o)(1) and who otherwise satisfies
the requirements of subsection (n) or (o) is not required to repeat the full basic training course to regain
law enforcement power but shall attend the refresher course described in subsection (n) or (o) and the
pre-basic training course established under subsection (f).
(r) This subsection applies only to a gaming agent employed as a law enforcement officer by the
Indiana gaming commission. A gaming agent appointed after June 30, 2005, may exercise the police
powers described in subsection (d) if:
(1) the agent successfully completes the pre-basic course established in subsection (f); and
(2) the agent successfully completes any other training courses established by the Indiana gaming
commission in conjunction with the board.
(s) This subsection applies only to a securities enforcement officer designated as a law enforcement
officer by the securities commissioner. A securities enforcement officer may exercise the police powers
described in subsection (d) if:
(1) the securities enforcement officer successfully completes the pre-basic course established in
subsection (f); and
(2) the securities enforcement officer successfully completes any other training courses established
by the securities commissioner in conjunction with the board.
(t) As used in this section, "upper level policymaking position" refers to the following:
(1) If the authorized size of the department or town marshal system is not more than ten (10)
members, the term refers to the position held by the police chief or town marshal.
(2) If the authorized size of the department or town marshal system is more than ten (10) members
but less than fifty-one (51) members, the term refers to:

(A) the position held by the police chief or town marshal; and
(B) each position held by the members of the police department or town marshal system in the
next rank and pay grade immediately below the police chief or town marshal.
(3) If the authorized size of the department or town marshal system is more than fifty (50) members,
the term refers to:
(A) the position held by the police chief or town marshal; and
(B) each position held by the members of the police department or town marshal system in the
next two (2) ranks and pay grades immediately below the police chief or town marshal.
(u) This subsection applies only to a correctional police officer employed by the department of
correction. A correctional police officer may exercise the police powers described in subsection (d) if:
(1) the officer successfully completes the pre-basic course described in subsection (f); and
(2) the officer successfully completes any other training courses established by the department of
correction in conjunction with the board.

SOURCE: IC 5-2-10.1-10; (13)PD4449.25. -->
SECTION 74. IC 5-2-10.1-10, AS AMENDED BY P.L.2-2006, SECTION 11, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 10. (a) A county may establish a county school
safety commission.
(b) The members of the commission are as follows:
(1) The school safety specialist for each school corporation located in whole or in part in the county.
(2) The judge of the court having juvenile jurisdiction in the county or the judge's designee.
(3) The sheriff of the county or the sheriff's designee.
(4) The chief officer of every other law enforcement agency in the county, or the chief officer's
designee.

(5) A representative of the juvenile probation system, appointed by the judge described under
subdivision (2).
(6) Representatives of community agencies that work with children within the county.
(7) A representative of the Indiana state police district that serves the county.
(8) A representative of the Prosecuting Attorneys Council of Indiana who specializes in the
prosecution of juveniles.
(9) Other appropriate individuals selected by the commission.
(c) If a commission is established, the school safety specialist of the school corporation having the
largest ADM (as defined in IC 20-18-2-2), as determined in the fall count of ADM in the school year
ending in the current calendar year, in the county shall convene the initial meeting of the commission.
(d) The members shall annually elect a chairperson.
(e) A commission shall perform the following duties:
(1) Perform a cumulative analysis of school safety needs within the county.
(2) Coordinate and make recommendations for the following:
(A) Prevention of juvenile offenses and improving the reporting of juvenile offenses within the
schools.
(B) Proposals for identifying and assessing children who are at high risk of becoming juvenile
offenders.
(C) Methods to meet the educational needs of children who have been detained as juvenile
offenders.
(D) Methods to improve communications among agencies that work with children.
(E) Methods to improve security and emergency preparedness.
(F) Additional equipment or personnel that are necessary to carry out safety plans.
(G) Any other topic the commission considers necessary to improve school safety within the
school corporations within the commission's jurisdiction.
(3) Provide assistance to the school safety specialists on the commission in developing and
requesting grants for safety plans.
(4) Provide assistance to the school safety specialists on the commission and the participating school
corporations in developing and requesting grants for school safe haven programs under section 7 of
this chapter.
(5) Assist each participating school corporation in carrying out the school corporation's safety plans.
(f) The affirmative votes of a majority of the voting members of the commission are required for the
commission to take action on a measure.

SOURCE: IC 5-10-8.5-9; (13)PD4449.26. -->
SECTION 75. IC 5-10-8.5-9, AS ADDED BY P.L.44-2007, SECTION 1, IS AMENDED TO READ
AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 9. (a) As used in this chapter, "retired participant"
means:
(1) A participant who is eligible for and has applied to receive a normal, unreduced or disability
retirement benefit (as determined by the Indiana public employee retirement fund of which the
participant is a member) on the participant's last day of service.
(2) A participant who has completed at least ten (10) years of service as an elected or appointed
officer on the participant's last day of service as an elected or appointed officer. For purposes of
determining whether a participant has completed at least ten (10) years of service on the
participant's last day of service for purposes of this subdivision, any partial year of service
completed by the participant in the year in which the participant is appointed to fill a vacant
elected office shall be considered to be one (1) complete year of service.
(b) For a participant described in subsection (a)(2) who has service with more than one (1) employer,
the participant's years of service is the sum of all of the participant's years of service.
SECTION 76. IC 5-10.3-8-14, AS AMENDED BY SEA 499-2013, SECTION 1, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 14. (a) Except as provided in subsection (c),
this section applies to employees of the state (as defined in IC 5-10.3-7-1(d)) who are:
(1) members of the fund; and
(2) paid by the auditor of state by salary warrants.
(b) Except as provided in subsection (c), this section does not apply to the employees of the state (as
defined in IC 5-10.3-7-1(d)) employed by:
(1) a body corporate and politic of the state created by state statute; or
(2) a state educational institution (as defined in IC 21-7-13-32).
(c) The chief executive officer of a body or institution described in subsection (b) may elect to have
this section apply to the employees of the state (as defined in IC 5-10.3-7-1(d)) employed by the body or
institution by submitting a written notice of the election to the director. An election under this subsection
is effective on the later of:
(1) the date the notice of the election is received by the director; or
(2) July 1, 2013.
(d) The board shall adopt provisions to establish a retirement medical benefits account within the fund
under Section 401(h) or as a separate fund under another applicable section of the Internal Revenue Code
for the purpose of converting unused excess accrued leave to a monetary contribution for an employee
of the state to fund on a pretax basis benefits for sickness, accident, hospitalization, and medical expenses

for the employee and the spouse and dependents of the employee after the employee's retirement. The
state may match all or a portion of an employee's contributions to the retirement medical benefits account
established under this section.
(e) The board is the trustee of the account described in subsection (d). The account must be qualified,
as determined by the Internal Revenue Service, as a separate account within the fund whose benefits are
subordinate to the retirement benefits provided by the fund.
(f) The board may adopt rules under IC 5-10.5-4-2 that it considers appropriate or necessary to
implement this section after consulting with the state personnel department. The rules adopted by the
board under this section must:
(1) be consistent with the federal and state law that applies to:
(A) the account described in subsection (d); and
(B) the fund; and
(2) include provisions concerning:
(A) the type and amount of leave that may be converted to a monetary contribution;
(B) the conversion formula for valuing any leave that is converted;
(C) the manner of employee selection of leave conversion; and
(D) the vesting schedule for any leave that is converted.
(g) The board may adopt the following:
(1) Account provisions governing:
(A) the investment of amounts in the account; and
(B) the accounting for converted leave.
(2) Any other provisions that are necessary or appropriate for operation of the account.
(h) The account described in subsection (d) may be implemented only if the board has received from
the Internal Revenue Service any rulings or determination letters that the board considers necessary or
appropriate.
(i) To the extent allowed by:
(1) the Internal Revenue Code; and
(2) rules adopted by:
(A) the board under this section; and
(B) the state personnel department under IC 5-10-1.1-7.5;
employees of the state may convert unused excess accrued leave to a monetary contribution under this
section and under IC 5-10-1.1-7.5.
(j) To the extent allowed by the Internal Revenue Code, the account described in subsection (d) must
include provisions that:
(1) require an employee of the state to convert to a monetary contribution to the account at
retirement the balance, but not more than thirty (30) days, of unused vacation leave for which the
state would otherwise pay an employee in good standing at separation from service (as determined
by state personnel department rule); and
(2) allow the state to contribute to the account on the employee's behalf an amount not to exceed two
(2) times the amount of the employee's contribution under subdivision (1). (k) The account described in subsection (d) must be implemented on July 1, 2014.
SECTION 77. IC 6-1.1-20.6-7.5, AS ADDED BY P.L.146-2008, SECTION 223, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 7.5. (a) A person is entitled to a credit
against the person's property tax liability for property taxes first due and payable after 2009. The amount

of the credit is the amount by which the person's property tax liability attributable to the person's:
(1) homestead exceeds one percent (1%);
(2) residential property exceeds two percent (2%);
(3) long term care property exceeds two percent (2%);
(4) agricultural land exceeds two percent (2%);
(5) nonresidential real property exceeds three percent (3%); or
(6) personal property exceeds three percent (3%);
of the gross assessed value of the property that is the basis for determination of property taxes for that
calendar year.
(b) This subsection applies to property taxes first due and payable after 2009. Property taxes imposed
after being approved by the voters in a referendum or local public question shall not be considered for
purposes of calculating a person's credit under this section.
(c) This subsection applies to property taxes first due and payable after 2009. As used in this
subsection, "eligible county" means only a county for which the general assembly determines in 2008 that
limits to property tax liability under this chapter are expected to reduce in 2010 the aggregate property
tax revenue that would otherwise be collected by all units of local government and school corporations
in the county by at least twenty percent (20%). Property taxes imposed in an eligible county: (1) to pay debt service: (A) on bonds issued before July 1, 2008; or
(B) on bonds that:
(i) are issued to refund bonds originally issued before July 1, 2008; and
(ii) have a maturity date that is not later than the maturity date of the bonds refunded;
(2) to make lease payments forbondsor on leases issuedor entered into before July 1, 2008, to
secure bonds;
(3) to make lease payments on leases:
(A) that are amended to refund bonds secured by leases entered into before July 1, 2008;
and
(B) that have a term that is not longer than the term of the leases amended; or
(4) to make lease payments on leases:
(A) that secure bonds:
(i) issued to refund bonds originally issued before July 1, 2008; and
(ii) that have a maturity date that is not later than the maturity date of the bonds
refunded; and
(B) that have a term that ends not later than the maturity date of the bonds refunded;
shall not be considered for purposes of calculating a person's credit under this section.

SOURCE: IC 6-2.5-10-1; (13)PD4390.29. -->
SECTION 78. IC 6-2.5-10-1, AS AMENDED BY P.L.229-2011, SECTION 82, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. (a) The department shall account for all state
gross retail and use taxes that it collects.
(b) The department shall deposit those collections in the following manner:
(1) Ninety-nine Ninety-eight and eight hundred forty-eight thousandths percent (99.848%) (98.848%) of the collections shall be paid into the state general fund. (2) One percent (1%) of the collections shall be deposited in the motor vehicle highway account
established under IC 8-14-1.(2) (3) Twenty-nine thousandths of one percent (0.029%) of the collections shall be deposited into

the industrial rail service fund established under IC 8-3-1.7-2.(3) (4) One hundred twenty-three thousandths of one percent (0.123%) of the collections shall be
deposited into the commuter rail service fund established under IC 8-3-1.5-20.5.

SOURCE: IC 6-2.5-14; (13)AM060908.22. -->
SECTION 79. IC 6-2.5-14 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ
AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Chapter 14. Amnesty Program for Unpaid Use Tax on Claimed Race Horses
Sec. 1. The department shall establish an amnesty program for taxpayers having an unpaid use
tax liability for a claiming transaction occurring before June 1, 2012. This chapter does not apply
to a taxpayer's state gross retail or use tax liability from any other type of transaction.
Sec. 2. The time in which a voluntary payment of tax liability may be made (or the taxpayer may
enter into a payment program acceptable to the department for the payment of the unpaid use taxes
in full in the manner and time established in a written payment program agreement between the
department and the taxpayer) under the amnesty program is limited to the period ending before
January 1, 2014.
Sec. 3. The amnesty program established under this chapter must require the following:
(1) That a taxpayer who enters an agreement described in section 2 of this chapter is not
eligible for any other amnesty program that may be established.
(2) That the taxpayer shall comply with all other amnesty conditions adopted under a rule of
the department in effect on the date the voluntary payment is made.
Sec. 4. Upon payment by a taxpayer to the department of all use taxes due from the taxpayer for
a tax period (or payment of the unpaid use taxes in full in the manner and time established in a
written payment program agreement between the department and the taxpayer), the department:
(1) shall abate and not seek to collect any interest, penalties, collection fees, or costs that would
otherwise be applicable;
(2) shall release any liens imposed;
(3) shall not seek civil or criminal prosecution against any individual or entity; and
(4) shall not issue, or, if issued, shall withdraw, an assessment, a demand notice, or a warrant
for payment under IC 6-8.1-5-3, IC 6-8.1-8-2, or another law against any individual or entity;
for use taxes due from the taxpayer for the tax period for which amnesty has been granted to the
taxpayer.
Sec. 5. Amnesty granted under this chapter is binding on the state and its agents. However,
failure to pay the department all use taxes due for a tax period invalidates any amnesty granted
under this chapter for that tax period.
Sec. 6. The department shall enforce an agreement with a taxpayer that prohibits the taxpayer
from receiving amnesty in another amnesty program.
SECTION 80. IC 6-3-1-3.5, AS AMENDED BY P.L.137-2012, SECTION 52, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013 (RETROACTIVE)]: Sec. 3.5. When used in
this article, the term "adjusted gross income" shall mean the following:
(a) In the case of all individuals, "adjusted gross income" (as defined in Section 62 of the Internal
Revenue Code), modified as follows:
(1) Subtract income that is exempt from taxation under this article by the Constitution and statutes
of the United States.
(2) Add an amount equal to any deduction or deductions allowed or allowable pursuant to Section
62 of the Internal Revenue Code for taxes based on or measured by income and levied at the state

level by any state of the United States.
(3) Subtract one thousand dollars ($1,000), or in the case of a joint return filed by a husband and
wife, subtract for each spouse one thousand dollars ($1,000).
(4) Subtract one thousand dollars ($1,000) for:
(A) each of the exemptions provided by Section 151(c) of the Internal Revenue Code;
(B) each additional amount allowable under Section 63(f) of the Internal Revenue Code; and
(C) the spouse of the taxpayer if a separate return is made by the taxpayer and if the spouse, for
the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not
the dependent of another taxpayer.
(5) Subtract:
(A) one thousand five hundred dollars ($1,500) for each of the exemptions allowed under Section
151(c)(1)(B) of the Internal Revenue Code (as effective January 1, 2004); and
(B) five hundred dollars ($500) for each additional amount allowable under Section 63(f)(1) of
the Internal Revenue Code if the adjusted gross income of the taxpayer, or the taxpayer and the
taxpayer's spouse in the case of a joint return, is less than forty thousand dollars ($40,000).
This amount is in addition to the amount subtracted under subdivision (4).
(6) Subtract an amount equal to the lesser of:
(A) that part of the individual's adjusted gross income (as defined in Section 62 of the Internal
Revenue Code) for that taxable year that is subject to a tax that is imposed by a political
subdivision of another state and that is imposed on or measured by income; or
(B) two thousand dollars ($2,000).
(7) Add an amount equal to the total capital gain portion of a lump sum distribution (as defined in
Section 402(e)(4)(D) of the Internal Revenue Code) if the lump sum distribution is received by the
individual during the taxable year and if the capital gain portion of the distribution is taxed in the
manner provided in Section 402 of the Internal Revenue Code.
(8) Subtract any amounts included in federal adjusted gross income under Section 111 of the Internal
Revenue Code as a recovery of items previously deducted as an itemized deduction from adjusted
gross income.
(9) Subtract any amounts included in federal adjusted gross income under the Internal Revenue Code
which amounts were received by the individual as supplemental railroad retirement annuities under
45 U.S.C. 231 and which are not deductible under subdivision (1).
(10) Subtract an amount equal to the amount of federal Social Security and Railroad Retirement
benefits included in a taxpayer's federal gross income by Section 86 of the Internal Revenue Code.
(11) In the case of a nonresident taxpayer or a resident taxpayer residing in Indiana for a period of
less than the taxpayer's entire taxable year, the total amount of the deductions allowed pursuant to
subdivisions (3), (4), (5), and (6) shall be reduced to an amount which bears the same ratio to the
total as the taxpayer's income taxable in Indiana bears to the taxpayer's total income.
(12) In the case of an individual who is a recipient of assistance under IC 12-10-6-1, IC 12-10-6-2.1,
IC 12-15-2-2, or IC 12-15-7, subtract an amount equal to that portion of the individual's adjusted
gross income with respect to which the individual is not allowed under federal law to retain an
amount to pay state and local income taxes.
(13) In the case of an eligible individual, subtract the amount of a Holocaust victim's settlement
payment included in the individual's federal adjusted gross income.
(14) Subtract an amount equal to the portion of any premiums paid during the taxable year by the

taxpayer for a qualified long term care policy (as defined in IC 12-15-39.6-5) for the taxpayer or the
taxpayer's spouse, or both.
(15) Subtract an amount equal to the lesser of:
(A) two thousand five hundred dollars ($2,500); or
(B) the amount of property taxes that are paid during the taxable year in Indiana by the individual
on the individual's principal place of residence.
(16) Subtract an amount equal to the amount of a September 11 terrorist attack settlement payment
included in the individual's federal adjusted gross income.
(17) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that
owns property for which bonus depreciation was allowed in the current taxable year or in an earlier
taxable year equal to the amount of adjusted gross income that would have been computed had an
election not been made under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in service.
(18) Add an amount equal to any deduction allowed under Section 172 of the Internal Revenue
Code.
(19) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that
placed Section 179 property (as defined in Section 179 of the Internal Revenue Code) in service in
the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election for federal income tax purposes not been made for
the year in which the property was placed in service to take deductions under Section 179 of the
Internal Revenue Code in a total amount exceeding twenty-five thousand dollars ($25,000).
(20) Add an amount equal to the amount that a taxpayer claimed as a deduction for domestic
production activities for the taxable year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(21) Subtract an amount equal to the amount of the taxpayer's qualified military income that was not
excluded from the taxpayer's gross income for federal income tax purposes under Section 112 of the
Internal Revenue Code.
(22) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the individual's federal adjusted gross income under the Internal Revenue Code.
(23) Subtract any amount of a credit (including an advance refund of the credit) that is provided to
an individual under 26 U.S.C. 6428 (federal Economic Stimulus Act of 2008) and included in the
individual's federal adjusted gross income.
(24) Add any amount of unemployment compensation excluded from federal gross income, as
defined in Section 61 of the Internal Revenue Code, under Section 85(c) of the Internal Revenue
Code.
(25) Add the amount excluded from gross income under Section 108(a)(1)(e) of the Internal
Revenue Code for the discharge of debt on a qualified principal residence.
(26) Add an amount equal to any income not included in gross income as a result of the deferral of
income arising from business indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in
Section 108(i) of the Internal Revenue Code. Subtract the amount necessary from the adjusted gross
income of any taxpayer that added an amount to adjusted gross income in a previous year to offset
the amount included in federal gross income as a result of the deferral of income arising from

business indebtedness discharged in connection with the reacquisition after December 31, 2008, and
before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the
Internal Revenue Code.(27)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerthatplacedqualifiedrestaurantpropertyinserviceduringthetaxableyearandthatwasclassifiedas15-yearpropertyunderSection168(e)(3)(E)(v)oftheInternalRevenueCodeequaltotheamountofadjustedgrossincomethatwouldhavebeencomputedhadtheclassificationnotappliedtothepropertyintheyearthatitwasplacedinservice.(28)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerthatplacedqualifiedretailimprovementpropertyinserviceduringthetaxableyearandthatwasclassifiedas15-yearpropertyunderSection168(e)(3)(E)(ix)oftheInternalRevenueCodeequaltotheamountofadjustedgrossincomethatwouldhavebeencomputedhadtheclassificationnotappliedtothepropertyintheyearthatitwasplacedinservice.(29) (27) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that claimed the special allowance for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted gross income that would have been
computed had the special allowance not been claimed for the property.(30) (28) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property equal to the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not been made for the year.(31) (29) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 181 of the Internal Revenue Code to expense costs for a
qualified film or television production equal to the amount of adjusted gross income that would have
been computed had an election for federal income tax purposes not been made for the year.(32) (30) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that treated a loss from the sale or exchange of preferred stock in:
(A) the Federal National Mortgage Association, established under the Federal National Mortgage
Association Charter Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 in the
current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that
would have been computed had the loss not been treated as an ordinary loss.(33) (31) Add the amount excluded from federal gross income under Section 103 of the Internal
Revenue Code for interest received on an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after December 31, 2011.(34)AddtheamountdeductedfromgrossincomeunderSection198oftheInternalRevenueCodefortheexpensingofenvironmentalremediationcosts.(35)AddtheamountexcludedfromgrossincomeunderSection408(d)(8)oftheInternalRevenueCodeforacharitabledistributionfromanindividualretirementplan.(36)AddtheamountdeductedfromgrossincomeunderSection222oftheInternalRevenueCodeforqualifiedtuitionandrelatedexpenses.(37)AddtheamountdeductedfromgrossincomeunderSection62(a)(2)(D)oftheInternalRevenue

Codeforcertainexpensesofelementaryandsecondaryschoolteachers.(38)AddtheamountexcludedfromgrossincomeunderSection127oftheInternalRevenueCodeasannualemployerprovidededucationexpenses.(39)AddtheamountdeductedfromgrossincomeunderSection179EoftheInternalRevenueCodeforanyqualifiedadvancedminesafetyequipmentproperty.(40)AddthemonthlyamountexcludedfromgrossincomeunderSection132(f)(1)(A)and132(f)(1)(B)oftheInternalRevenueCodethatexceedsonehundreddollars($100)amonthforaqualifiedtransportationfringe.(41)AddtheamountdeductedfromgrossincomeunderSection221oftheInternalRevenueCodethatexceedstheamountthetaxpayercoulddeductunderSection221oftheInternalRevenueCodebeforeitwasamendedbytheTaxRelief,UnemploymentInsuranceReauthorization,andJobCreationActof2010(P.L.111-312).(42)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerthatplacedanyqualifiedleaseholdimprovementpropertyinserviceduringthetaxableyearandthatwasclassifiedas15-yearpropertyunderSection168(e)(3)(E)(iv)oftheInternalRevenueCodeequaltotheamountofadjustedgrossincomethatwouldhavebeencomputedhadtheclassificationnotappliedtothepropertyintheyearthatitwasplacedintoservice.(43)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerthatplacedamotorsportsentertainmentcomplexinserviceduringthetaxableyearandthatwasclassifiedas7-yearpropertyunderSection168(e)(3)(C)(ii)oftheInternalRevenueCodeequaltotheamountofadjustedgrossincomethatwouldhavebeencomputedhadtheclassificationnotappliedtothepropertyintheyearthatitwasplacedintoservice.(44)AddtheamountdeductedunderSection195oftheInternalRevenueCodeforstart-upexpendituresthatexceedstheamountthetaxpayercoulddeductunderSection195oftheInternalRevenueCodebeforeitwasamendedbytheSmallBusinessJobsActof2010(P.L.111-240).(45)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerforwhichtaxwasnotimposedonthenetrecognizedbuilt-ingainofanScorporationunderSection1374(d)(7)oftheInternalRevenueCodeasamendedbytheSmallBusinessJobsActof2010(P.L.111-240)equaltotheamountofadjustedgrossincomethatwouldhavebeencomputedbeforeSection1374(d)(7)oftheInternalRevenueCodeasamendedbytheSmallBusinessJobsActof2010(P.L.111-240).(46) (32) This subdivision does not apply to payments made for services provided to a business that
was enrolled and participated in the E-Verify program (as defined in IC 22-5-1.7-3) during the time
the taxpayer conducted business in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction allowed under the Internal
Revenue Code for wages, reimbursements, or other payments made for services provided in Indiana
by an individual for services as an employee, if the individual was, during the period of service,
prohibited from being hired as an employee under 8 U.S.C. 1324a.
(b) In the case of corporations, the same as "taxable income" (as defined in Section 63 of the Internal
Revenue Code) adjusted as follows:
(1) Subtract income that is exempt from taxation under this article by the Constitution and statutes
of the United States.
(2) Add an amount equal to any deduction or deductions allowed or allowable pursuant to Section
170 of the Internal Revenue Code.
(3) Add an amount equal to any deduction or deductions allowed or allowable pursuant to Section

63 of the Internal Revenue Code for taxes based on or measured by income and levied at the state
level by any state of the United States.
(4) Subtract an amount equal to the amount included in the corporation's taxable income under
Section 78 of the Internal Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that
owns property for which bonus depreciation was allowed in the current taxable year or in an earlier
taxable year equal to the amount of adjusted gross income that would have been computed had an
election not been made under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in service.
(6) Add an amount equal to any deduction allowed under Section 172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that
placed Section 179 property (as defined in Section 179 of the Internal Revenue Code) in service in
the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election for federal income tax purposes not been made for
the year in which the property was placed in service to take deductions under Section 179 of the
Internal Revenue Code in a total amount exceeding twenty-five thousand dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as a deduction for domestic
production activities for the taxable year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Add to the extent required by IC 6-3-2-20 the amount of intangible expenses (as defined in
IC 6-3-2-20) and any directly related intangible interest expenses (as defined in IC 6-3-2-20) for the
taxable year that reduced the corporation's taxable income (as defined in Section 63 of the Internal
Revenue Code) for federal income tax purposes.
(10) Add an amount equal to any deduction for dividends paid (as defined in Section 561 of the
Internal Revenue Code) to shareholders of a captive real estate investment trust (as defined in
section 34.5 of this chapter).
(11) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the corporation's taxable income under the Internal Revenue Code.
(12) Add an amount equal to any income not included in gross income as a result of the deferral of
income arising from business indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in
Section 108(i) of the Internal Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a previous year the amount necessary to
offset the amount included in federal gross income as a result of the deferral of income arising from
business indebtedness discharged in connection with the reacquisition after December 31, 2008, and
before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the
Internal Revenue Code.(13)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerthatplacedqualifiedrestaurantpropertyinserviceduringthetaxableyearandthatwasclassifiedas15-yearpropertyunderSection168(e)(3)(E)(v)oftheInternalRevenueCodeequaltotheamountofadjustedgrossincomethatwouldhavebeencomputedhadtheclassificationnotappliedtothepropertyintheyearthatitwasplacedinservice.(14)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerthatplaced

qualifiedretailimprovementpropertyinserviceduringthetaxableyearandthatwasclassifiedas15-yearpropertyunderSection168(e)(3)(E)(ix)oftheInternalRevenueCodeequaltotheamountofadjustedgrossincomethatwouldhavebeencomputedhadtheclassificationnotappliedtothepropertyintheyearthatitwasplacedinservice.(15) (13) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that claimed the special allowance for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted gross income that would have been
computed had the special allowance not been claimed for the property.(16) (14) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property equal to the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not been made for the year.(17) (15) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 181 of the Internal Revenue Code to expense costs for a
qualified film or television production equal to the amount of adjusted gross income that would have
been computed had an election for federal income tax purposes not been made for the year.(18) (16) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that treated a loss from the sale or exchange of preferred stock in:
(A) the Federal National Mortgage Association, established under the Federal National Mortgage
Association Charter Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 in the
current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that
would have been computed had the loss not been treated as an ordinary loss.(19)AddtheamountdeductedfromgrossincomeunderSection198oftheInternalRevenueCodefortheexpensingofenvironmentalremediationcosts.(20)AddtheamountdeductedfromgrossincomeunderSection179EoftheInternalRevenueCodeforanyqualifiedadvancedminesafetyequipmentproperty.(21)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerthatplacedanyqualifiedleaseholdimprovementpropertyinserviceduringthetaxableyearandthatwasclassifiedas15-yearpropertyunderSection168(e)(3)(E)(iv)oftheInternalRevenueCodeequaltotheamountofadjustedgrossincomethatwouldhavebeencomputedhadtheclassificationnotappliedtothepropertyintheyearthatitwasplacedintoservice.(22)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerthatplacedamotorsportsentertainmentcomplexinserviceduringthetaxableyearandthatwasclassifiedas7-yearpropertyunderSection168(e)(3)(C)(ii)oftheInternalRevenueCodeequaltotheamountofadjustedgrossincomethatwouldhavebeencomputedhadtheclassificationnotappliedtothepropertyintheyearthatitwasplacedintoservice.(23)AddtheamountdeductedunderSection195oftheInternalRevenueCodeforstart-upexpendituresthatexceedstheamountthetaxpayercoulddeductunderSection195oftheInternalRevenueCodebeforeitwasamendedbytheSmallBusinessJobsActof2010(P.L.111-240).(24) (17) This subdivision does not apply to payments made for services provided to a business that
was enrolled and participated in the E-Verify program (as defined in IC 22-5-1.7-3) during the time

the taxpayer conducted business in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction allowed under the Internal
Revenue Code for wages, reimbursements, or other payments made for services provided in Indiana
by an individual for services as an employee, if the individual was, during the period of service,
prohibited from being hired as an employee under 8 U.S.C. 1324a.(25) (18) Add the amount excluded from federal gross income under Section 103 of the Internal
Revenue Code for interest received on an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after December 31, 2011.
(c) In the case of life insurance companies (as defined in Section 816(a) of the Internal Revenue Code)
that are organized under Indiana law, the same as "life insurance company taxable income" (as defined
in Section 801 of the Internal Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article by the Constitution and statutes
of the United States.
(2) Add an amount equal to any deduction allowed or allowable under Section 170 of the Internal
Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable under Section 805 or Section 831(c)
of the Internal Revenue Code for taxes based on or measured by income and levied at the state level
by any state.
(4) Subtract an amount equal to the amount included in the company's taxable income under Section
78 of the Internal Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that
owns property for which bonus depreciation was allowed in the current taxable year or in an earlier
taxable year equal to the amount of adjusted gross income that would have been computed had an
election not been made under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in service.
(6) Add an amount equal to any deduction allowed under Section 172 or Section 810 of the Internal
Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that
placed Section 179 property (as defined in Section 179 of the Internal Revenue Code) in service in
the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election for federal income tax purposes not been made for
the year in which the property was placed in service to take deductions under Section 179 of the
Internal Revenue Code in a total amount exceeding twenty-five thousand dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as a deduction for domestic
production activities for the taxable year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the insurance company's taxable income under the Internal Revenue Code.
(10) Add an amount equal to any income not included in gross income as a result of the deferral of
income arising from business indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in
Section 108(i) of the Internal Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a previous year the amount necessary to

offset the amount included in federal gross income as a result of the deferral of income arising from
business indebtedness discharged in connection with the reacquisition after December 31, 2008, and
before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the
Internal Revenue Code.(11)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerthatplacedqualifiedrestaurantpropertyinserviceduringthetaxableyearandthatwasclassifiedas15-yearpropertyunderSection168(e)(3)(E)(v)oftheInternalRevenueCodeequaltotheamountofadjustedgrossincomethatwouldhavebeencomputedhadtheclassificationnotappliedtothepropertyintheyearthatitwasplacedinservice.(12)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerthatplacedqualifiedretailimprovementpropertyinserviceduringthetaxableyearandthatwasclassifiedas15-yearpropertyunderSection168(e)(3)(E)(ix)oftheInternalRevenueCodeequaltotheamountofadjustedgrossincomethatwouldhavebeencomputedhadtheclassificationnotappliedtothepropertyintheyearthatitwasplacedinservice.(13) (11) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that claimed the special allowance for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted gross income that would have been
computed had the special allowance not been claimed for the property.(14) (12) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property equal to the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not been made for the year.(15) (13) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 181 of the Internal Revenue Code to expense costs for a
qualified film or television production equal to the amount of adjusted gross income that would have
been computed had an election for federal income tax purposes not been made for the year.(16) (14) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that treated a loss from the sale or exchange of preferred stock in:
(A) the Federal National Mortgage Association, established under the Federal National Mortgage
Association Charter Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 in the
current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that
would have been computed had the loss not been treated as an ordinary loss.(17) (15) Add an amount equal to any exempt insurance income under Section 953(e) of the Internal
Revenue Code that is active financing income under Subpart F of Subtitle A, Chapter 1, Subchapter
N of the Internal Revenue Code.(18)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerthatplacedanyqualifiedleaseholdimprovementpropertyinserviceduringthetaxableyearandthatwasclassifiedas15-yearpropertyunderSection168(e)(3)(E)(iv)oftheInternalRevenueCodeequaltotheamountofadjustedgrossincomethatwouldhavebeencomputedhadtheclassificationnotappliedtothepropertyintheyearthatitwasplacedintoservice.(19)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerthatplaceda

motorsportsentertainmentcomplexinserviceduringthetaxableyearandthatwasclassifiedas7-yearpropertyunderSection168(e)(3)(C)(ii)oftheInternalRevenueCodeequaltotheamountofadjustedgrossincomethatwouldhavebeencomputedhadtheclassificationnotappliedtothepropertyintheyearthatitwasplacedintoservice.(20)AddtheamountdeductedunderSection195oftheInternalRevenueCodeforstart-upexpendituresthatexceedstheamountthetaxpayercoulddeductunderSection195oftheInternalRevenueCodebeforeitwasamendedbytheSmallBusinessJobsActof2010(P.L.111-240).(21)AddtheamountdeductedfromgrossincomeunderSection198oftheInternalRevenueCodefortheexpensingofenvironmentalremediationcosts.(22)AddtheamountdeductedfromgrossincomeunderSection179EoftheInternalRevenueCodeforanyqualifiedadvancedminesafetyequipmentproperty.(23) (16) This subdivision does not apply to payments made for services provided to a business that
was enrolled and participated in the E-Verify program (as defined in IC 22-5-1.7-3) during the time
the taxpayer conducted business in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction allowed under the Internal
Revenue Code for wages, reimbursements, or other payments made for services provided in Indiana
by an individual for services as an employee, if the individual was, during the period of service,
prohibited from being hired as an employee under 8 U.S.C. 1324a.(24) (17) Add the amount excluded from federal gross income under Section 103 of the Internal
Revenue Code for interest received on an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after December 31, 2011.
(d) In the case of insurance companies subject to tax under Section 831 of the Internal Revenue Code
and organized under Indiana law, the same as "taxable income" (as defined in Section 832 of the Internal
Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article by the Constitution and statutes
of the United States.
(2) Add an amount equal to any deduction allowed or allowable under Section 170 of the Internal
Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable under Section 805 or Section 831(c)
of the Internal Revenue Code for taxes based on or measured by income and levied at the state level
by any state.
(4) Subtract an amount equal to the amount included in the company's taxable income under Section
78 of the Internal Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that
owns property for which bonus depreciation was allowed in the current taxable year or in an earlier
taxable year equal to the amount of adjusted gross income that would have been computed had an
election not been made under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in service.
(6) Add an amount equal to any deduction allowed under Section 172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that
placed Section 179 property (as defined in Section 179 of the Internal Revenue Code) in service in
the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election for federal income tax purposes not been made for
the year in which the property was placed in service to take deductions under Section 179 of the

Internal Revenue Code in a total amount exceeding twenty-five thousand dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as a deduction for domestic
production activities for the taxable year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the insurance company's taxable income under the Internal Revenue Code.
(10) Add an amount equal to any income not included in gross income as a result of the deferral of
income arising from business indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in
Section 108(i) of the Internal Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a previous year the amount necessary to
offset the amount included in federal gross income as a result of the deferral of income arising from
business indebtedness discharged in connection with the reacquisition after December 31, 2008, and
before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the
Internal Revenue Code.(11)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerthatplacedqualifiedrestaurantpropertyinserviceduringthetaxableyearandthatwasclassifiedas15-yearpropertyunderSection168(e)(3)(E)(v)oftheInternalRevenueCodeequaltotheamountofadjustedgrossincomethatwouldhavebeencomputedhadtheclassificationnotappliedtothepropertyintheyearthatitwasplacedinservice.(12)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerthatplacedqualifiedretailimprovementpropertyinserviceduringthetaxableyearandthatwasclassifiedas15-yearpropertyunderSection168(e)(3)(E)(ix)oftheInternalRevenueCodeequaltotheamountofadjustedgrossincomethatwouldhavebeencomputedhadtheclassificationnotappliedtothepropertyintheyearthatitwasplacedinservice.(13) (11) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that claimed the special allowance for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted gross income that would have been
computed had the special allowance not been claimed for the property.(14) (12) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property equal to the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not been made for the year.(15) (13) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 181 of the Internal Revenue Code to expense costs for a
qualified film or television production equal to the amount of adjusted gross income that would have
been computed had an election for federal income tax purposes not been made for the year.(16) (14) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that treated a loss from the sale or exchange of preferred stock in:
(A) the Federal National Mortgage Association, established under the Federal National Mortgage
Association Charter Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1451 et seq.);

as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 in the
current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that
would have been computed had the loss not been treated as an ordinary loss.(17) (15) Add an amount equal to any exempt insurance income under Section 953(e) of the Internal
Revenue Code that is active financing income under Subpart F of Subtitle A, Chapter 1, Subchapter
N of the Internal Revenue Code.(18)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerthatplacedanyqualifiedleaseholdimprovementpropertyinserviceduringthetaxableyearandthatwasclassifiedas15-yearpropertyunderSection168(e)(3)(E)(iv)oftheInternalRevenueCodeequaltotheamountofadjustedgrossincomethatwouldhavebeencomputedhadtheclassificationnotappliedtothepropertyintheyearthatitwasplacedintoservice.(19)Addtheamountnecessarytomaketheadjustedgrossincomeofanytaxpayerthatplacedamotorsportsentertainmentcomplexinserviceduringthetaxableyearandthatwasclassifiedas7-yearpropertyunderSection168(e)(3)(C)(ii)oftheInternalRevenueCodeequaltotheamountofadjustedgrossincomethatwouldhavebeencomputedhadtheclassificationnotappliedtothepropertyintheyearthatitwasplacedintoservice.(20)AddtheamountdeductedunderSection195oftheInternalRevenueCodeforstart-upexpendituresthatexceedstheamountthetaxpayercoulddeductunderSection195oftheInternalRevenueCodebeforeitwasamendedbytheSmallBusinessJobsActof2010(P.L.111-240).(21)AddtheamountdeductedfromgrossincomeunderSection198oftheInternalRevenue